Mammoth Lakes Municipal Code Ch. 3.20 Transactions and Use Tax

This chapter shall be known as the "Town Recreation, Trails and Parks Investment Initiative Transactions and Use Tax Ordinance." This chapter shall be applicable in the incorporated territory of the Town.

(Code 1990, § 3.48.010; Ord. No. 08-01, § 1, 2008)

The term "operative date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of the ordinance from which this chapter is derived.

(Code 1990, § 3.48.020; Ord. No. 08-01, § 2, 2008)

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:

(1) To impose a retail transactions and use tax in accordance with the provisions of the Transactions and Use Tax Law, Revenue and Taxation Code § 7251 et seq. and Revenue and Taxation Code § 7285.91 which authorize the Town to adopt this chapter

(2) To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the State Sales and Use Tax law insofar as those provisions are not inconsistent with the requirements and limitations contained in the Transactions and Use Tax Law, Revenue and Taxation Code § 7251 et seq.

(3) To adopt a retail transactions and use tax ordinance that 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 State Sales and Use Taxes.

(4) 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 the Transactions and Use Tax Law, Revenue and Taxation Code § 7251 et seq., 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 chapter.

(Code 1990, § 3.48.030; Ord. No. 08-01, § 3, 2008)

Prior to the operative date, the Town shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance, provided that if the Town 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.

(Code 1990, § 3.48.040; Ord. No. 08-01, § 4, 2008)

For the privilege of selling tangible personal property at retail, a tax is imposed upon all retailers in the incorporated territory of the Town at the rate of one-half of one percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the territory on and after the operative date of the ordinance from which this chapter is derived.

(Code 1990, § 3.48.050; Ord. No. 08-01, § 5, 2008)

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 agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the State Sales and Use Tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization.

(Code 1990, § 3.48.060; Ord. No. 08-01, § 6, 2008)

An excise tax is imposed on the storage, use or other consumption in the Town of tangible personal property purchased from any retailer on and after the operative date of the ordinance from which this chapter is derived for storage, use or other consumption in the territory at the rate of one-half 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.

(Code 1990, § 3.48.070; Ord. No. 08-01, § 7, 2008)

Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of the Transactions and Use Tax Law, Revenue and Taxation Code § 7251 et seq., all of the State Sales and Use Tax Law, Revenue and Taxation Code § 6001 et seq. are adopted and made a part of this chapter as though fully set forth herein.

(Code 1990, § 3.48.080; Ord. No. 08-01, § 8, 2008)

In adopting the provisions of the State Sales and Use Tax Law, Revenue and Taxation Code § 6001 et seq.:

(1) When the State is named or referred to as the taxing agency, the name of the Town shall be substituted therefor. However, the substitution shall not be made when:

a. The word "state" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the State constitution;

b. The result of that substitution would require action to be taken by or against the Town or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this chapter;

c. In those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the State, when the result of the substitution would be to:

1. 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 the State Sales and Use Tax Law, Revenue and Taxation Code § 6001 et seq.;

2. 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 provision of that Code;

d. In Revenue and Taxation Code § 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828.

(2) The word "Town" shall be substituted for the word "state" in the phrase "retailer engaged in business in the State" in Section 6203 and in the definition of that phrase in Revenue and Taxation Code § 6203.

(Code 1990, § 3.48.090; Ord. No. 08-01, § 9, 2008)

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

(Code 1990, § 3.48.100; Ord. No. 08-01, § 10, 2008)

(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 or by any town, county, or town and county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law, Revenue and Taxation Code § 7200 et seq., or the amount of any State-administered 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 State or Federal law or the law of any foreign government.

(2) Sales of property to be used outside the Town which is shipped to a point outside the Town, pursuant to the contract of sale, by delivery to such point by the retailer or agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this subsection, delivery to a point outside the Town shall be satisfied:

a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Vehicle Code § 4000 et seq. (Div. 3, Ch. 1), aircraft licensed in compliance with Public Utilities Code § 21411, and undocumented vessels registered under Vehicle Code § 9840 et seq. (Div. 3.5) 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, the same's 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 the ordinance from which this chapter is derived.

(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 the ordinance from which this chapter is derived.

(5) For the purposes of Subsections (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 chapter, the storage, use or other consumption in the Town 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 the State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Revenue and Taxation Code §§ 6366 and 6366.1;

(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 the ordinance from which this chapter is derived;

(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 the ordinance from which this chapter is derived;

(5) For the purposes of Subsections (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 Subsection (c)(7) of this section, a retailer engaged in business in the Town 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 Town or participates within the Town 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 Town or through any representative, agent, canvasser, solicitor, subsidiary, or person in the Town under the authority of the retailer;

(7) The term "a retailer engaged in business in the Town" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Vehicle Code § 4000 et seq. (Div. 3, Ch. 1), aircraft licensed in compliance with Public Utilities Code § 21411, or undocumented vessels registered under Vehicle Code § 9840 et seq. (Div. 3.5). 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 Town.

(d) Any person subject to use tax under 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 Revenue and Taxation Code (Revenue and Taxation Code § 7251 et seq.) 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.

(Code 1990, § 3.48.110; Ord. No. 08-01, § 11, 2008)

All amendments subsequent to the effective date of the ordinance from which this chapter is derived to the Sales and Use Tax Law, Revenue and Taxation Code § 6001 et seq. relating to sales and use taxes and which are not inconsistent with Transactions and Use Tax Law (Div. 2, Part 1.6) Revenue and Taxation Code § 7251 et seq., and Revenue and Taxation Code §§ 7280 through 7301.1 (Div. 2, Part 1.7), and all amendments to thereto, 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.

(Code 1990, § 3.48.120; Ord. No. 08-01, § 12, 2008)

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 Town, or against any officer of the State or the Town, to prevent or enjoin the collection under this chapter, or Transactions and Use Tax Law (Div. 2, Part 1.6) Revenue and Taxation Code § 7251 et seq., of any tax or any amount of tax required to be collected.

(Code 1990, § 3.48.130; Ord. No. 08-01, § 13, 2008)

(a) All proceeds of the tax levied and imposed hereunder shall be accounted for and paid into a special fund designated for use by the Town only for the Mammoth Lakes recreation, trails and parks funding set forth in the expenditure plan for the administration and expenditure of the tax proceeds, attached to the ordinance from which this chapter is derived as exhibit 1. The expenditure plan may be amended from time to time by a majority vote of the Town Council, so long as the funds are utilized for recreation, trails and parks funding. For the purposes of this chapter, the term "recreation, trails and parks funding" means planning, construction, operation, maintenance, programming, and administration of all Town recreation facilities and programs, trails and parks managed by the Town.

(b) The Town is authorized to incur indebtedness in the form of bonds, notes, contractual obligations or other evidence of indebtedness authorized by law to finance or refinance costs described in Subsection (a) of this section, and to pay any costs of issuing or incurring such indebtedness, to fund reserve funds, capitalized interest, costs of credit enhancement, costs of interest rate hedging arrangements or any other financing costs associated with such indebtedness. Such indebtedness shall be solely payable from and may be secured by a pledge and lien on, the proceeds of the tax levied and imposed hereunder.

(Code 1990, § 3.48.150; Ord. No. 08-01, § 15, 2008)

By no later than December 31 of each year, the Town's independent auditors shall complete a recreation, trails and parks investment initiative audit report. Such report shall review whether the tax revenue is collected, managed and expended in accordance with this chapter.

(Code 1990, § 3.48.160; Ord. No. 08-01, § 16, 2008)

(a) All proceeds of the tax levied and imposed hereunder shall be accounted for and paid into a special fund designated for use by the Town only for the planning, construction, operation, maintenance, programming, and administration of all trails, parks, and recreation facilities managed by the Town without supplanting existing parks and recreation facility maintenance funds.

(b) The Town is hereby authorized to incur indebtedness in the form of bonds, notes, contractual obligations, or other evidences of indebtedness authorized by law to finance or refinance costs for trails, parks, and recreation facilities and to pay any costs of issuing or incurring such indebtedness, to fund reserve funds, capitalized interest, costs of credit enhancement, costs of interest rate hedging arrangements, or any other financing costs associated with such indebtedness. Such indebtedness shall be solely payable from and may be secured by a pledge and lien on, the proceeds of the tax levied and imposed hereunder.

(c) The Town Council may designate by resolution a board, commission, or committee to provide recommendations to the Town Council regarding the use of funds after accepting public input. The Town Council may authorize direct funding for such board, commission, or committee to offset the costs of providing such recommendations, including costs for operating and administrative expenses.

(Code 1990, ch. 3.48, att.; Ord. No. 14-08, § 2, 9-17-2014)