Marin County Municipal Code Ch. 3.60 Transaction and Use Tax

This chapter shall be known as the "Marin County Transaction and Use Tax" which establishes and implements a transaction and use tax.

(Ord. 3156 § 1 (part), 1993)

For the purposes of this chapter the following words shall have the meanings ascribed to them by this section.

"District" means all of the incorporated and unincorporated areas of the county of Marin.

"Effective date" means the date of adoption of the ordinance codified in this chapter, which shall take effect at the close of the polls on the day of election at which the measure is adopted by a majority vote of the qualified voters voting on the measure.

"Operative date" means January 1, 1994 in the event that Proposition 172 imposing a statewide one-half of one percent sales and use tax fails to be approved by the state electorate at the state special election to be held on November 2, 1993. In the event that Proposition 172 is approved, this tax shall not become operative.

(Ord. 3156 § 1 (part), 1993)

This chapter should be interpreted so as to achieve the purposes set forth herein:

(a) To impose a transactions and use tax in accordance with the provisions of Part 1.6 (commencing with § 7251) and Part 1.7 (commencing with § 7285) of Division 2 of the California Revenue and Taxation Code;

(b) To incorporate 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 Revenue and Taxation Code;

(c) To impose a transactions and use tax and provide 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 tax;

(d) To authorize administration of a transaction and use tax in a manner that will, to the highest degree possible, be consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transaction and use taxes and at the same time minimize the burden of recordkeeping upon persons subject to taxation under the provisions of this chapter;

(e) To provide financial assistance for the general purposes of the district.

(Ord. 3156 § 1 (part), 1993)

Upon the effective date of the ordinance codified in this chapter, the district shall exercise all powers necessary to perform collection, administration and allocation duties with respect to the transaction and use tax, in a manner consistent with Part 1.6 (commencing with § 7251) and Part 1.7 (commencing with § 7285) of Division 2 of the Revenue And Taxation Code.

(Ord. 3156 § 1 (part), 1993)

Prior to the operative date of the ordinance codified in this chapter, the district shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transaction and use tax; provided, that if the district 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.

(Ord. 3156 § 1 (part), 1993)

For the privilege of selling tangible personal property at retail, a tax is imposed upon all retailers in this district 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 this district on and after the operative date.

(Ord. 3156 § 1 (part), 1993)

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 State Board of Equalization.

(Ord. 3156 § 1 (part), 1993)

An excise tax is imposed on the storage, use or other consumption in this district of tangible personal property purchases from any retailer on and after the operative date for storage, use or other consumption in this district at the rate of one-half of one percent of the sales price of the property. The sales price shall include delivery when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

(Ord. 3156 § 1 (part), 1993)

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 Revenue and Taxation Code, all of the provisions of part 1 of Division 2 of the Revenue and Taxation Code (commencing with Section 6001) are adopted and made a part of this chapter as though fully set forth herein.

(Ord. 3156 § 1 (part), 1993)

In adopting the provisions of Part I of Division 2 of the Revenue and Taxation Code, wherever the State of California is named or referred to as the taxing agency, the name of the district 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 of California, the substitution would require action to be taken by or against the district 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; the substitution shall not be made 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 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 which such sales, storage, use or other consumption remains subject to tax by the state under the said provisions of that code; the substitution shall not be made in Sections 6701, 6702 (except in the last sentence thereof), 6703, 6711, 6715, 6736, 6737, 6797 or 6828 of the Revenue and Taxation Code.

The name of the district shall be substituted for the word "state" in the phrase "retailer engaged in business in this state" in Section 6203 and in the definition of that phrase in Section 6203.

(Ord. 3156 § 1 (part), 1993)

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

(Ord. 3156 § 1 (part), 1993)

(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 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 state-administered transaction or use tax.

(b) There are exempted from the computation of the amount of transactions tax gross receipts when they are 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 district in which the sale is made and directly and exclusively in the use of the 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 district which are shipped to a point outside the district, pursuant to the contract of sale, by delivery to that point by the retailer or his or her agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the district shall be satisfied:

(i) With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with § 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with § 9850) of the Vehicle Code by registration to an out-of-district address and by a declaration under penalty of perjury, signed by the buyer, stating that the address is, in fact, his or her principal place of residence,

(ii) With respect to commercial vehicles by registration to a place of business out-of-district, and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address;

(3) The sale of tangible 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 codified in this chapter;

(4) A lease of tangible personal property which is a continuing sale of that 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 codified in this chapter;

(5) For the purposes of subsections (b)(3) and (b)(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 that right is exercised.

(c) There is exempted from the use tax imposed by this chapter the storage, use or other consumption in this district of tangible personal property:

(1) The gross receipts from the sale of which have been subject to a transactions tax under and state-administered transaction and use tax ordinance;

(2) 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 exemption provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California;

(3) If the purchaser is obligated to purchase the property for a fixed price pursuant to contract entered into prior to the operative date of the ordinance codified in this chapter;

(4) The possession of, or the exercise of any right or power over, tangible personal property 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 codified in this chapter;

(5) For the purposes of subsections (c)(3) and (c)(4) of this section, the storage, use or other consumption of, 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 the right is exercised;

(6) Except as provided in subsection (c)(7) of this section, a retailer engaged in business in the district 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 district or participates within the district 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 district, or through any representative, agent, canvasser, solicitor, subsidiary or person in the district under the authority of the retailer;

(7) A retailer engaged in business in the district 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 Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with § 9850) of the 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 district.

(d) Any person subject to use tax under this chapter may credit against that tax or any transactions tax, or to reimbursement for a transaction tax paid to a district or retailer in a district imposing a transaction and use tax pursuant to Part 1.6 of Division 2 of the 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.

(Ord. 3156 § 1 (part), 1993)

All amendments to Part 1 of Division 2 of the Revenue and Taxation Code made subsequent to the effective date of the ordinance codified in this chapter which relate to sales and use taxes and which are not inconsistent with Part 1.6 of Division 2 of the 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.

(Ord. 3156 § 1 (part), 1993)

Any person violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a free of not more than five hundred dollars or by imprisonment for a period of not more than six months, or by both such fine and imprisonment.

(Ord. 3156 § 1 (part), 1993)

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 county of Marin, or against any officer of the state or the county of Marin, to prevent or enjoin the collection under this chapter or Part 1.6 of Division 2 of the Revenue and Taxation Code, or any tax or any amount of tax required to be collected.

(Ord. 3156 § 1 (part), 1993)

To the extent authorized by law, after contracting with the State Board of Equalization to administer the transaction and use tax under this chapter, authorization is given to the county to contract with the incorporated cities of the county of Marin for a share of the revenue derived from the transaction and use taxes imposed under this chapter.

The apportionment of revenues between the county and the cities shall be for general fund purposes of both the county and the cities. The apportionment of those revenues between the county and the cities shall be derived from the actual revenues collected by the State Board of Equalization and shall be shared by the county and cities as determined by the Marin County auditor in the following manner:

(A) The auditor shall determine an allocation factor for each city within the county, the numerator of which shall be the amount of revenue shifted from that city to the Educational Revenue Augmentation Fund pursuant to Section 97.035 of the Revenue and Taxation Code or any amendments thereto effective January 1, 1994 through June 30, 1994, and each subsequent fiscal year thereafter less the amount of vehicle license fee revenues allocated to the city pursuant to Section 11005.4 of the Revenue and Taxation Code or any amendments thereto effective January 1, 1994 through June 30, 1994, and each subsequent fiscal year thereafter, and the denominator of which shall be the amount of revenue shifted from all cities in the county and from the county to the Educational Revenue Augmentation Fund pursuant to Section 97.035 of the Revenue and Taxation Code or any amendments thereto effective January 1, 1994 through June 30, 1994, and each subsequent fiscal year thereafter less the amount of vehicle license fee revenues allocated to the county and all cities in the county pursuant to Section 11005.4 of the Revenue and Taxation Code or any amendments thereto revenues received by the county effective January 1, 1994 through June 30, 1994, and each subsequent fiscal year thereafter.

(B) After appropriate deductions are made by the state Board of Equalization under its agreement with the county of Marin, the auditor shall multiply the remaining amounts received, by the allocation factor determined in subsection A of this section for each city. The amount so computed shall be allocated to each respective city subject to the limitation in subsection C of this section.

(C) Notwithstanding subsection B of this section, the amount of funds that may be allocated to a city shall not exceed fifty percent of the difference between the following:

(i) The amount by which the city's allocation of property tax revenues was reduced pursuant to Section 97.035 of the Revenue and Taxation Code or any amendments thereto;

(ii) The amount of vehicle license fee revenues allocated to the city pursuant to Section 11005.4 of the Revenue and Taxation Code or any amendments thereto.

(Ord. 3156 § 1 (part), 1993)