Merced Municipal Code Ch. 3.28 Sales Tax

For the privilege of selling tangible personal property at retail, a tax is imposed upon all retailers at the rate of one percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the city on or after July 1, 1956. The tax imposed by this chapter is in addition to any and all other taxes imposed by any other section or chapter of this code.

(Prior code § 26.39).

The tax levied, except as otherwise provided in this chapter, is levied in the same manner, to the same extent and under the same conditions as sales taxes are levied pursuant to Part 1 of Division 2 of the California Revenue and Taxation Code, known as the "Sales and Use Tax Law," as amended and in force and effect on July 1, 1956.

(Prior code § 26.40).

A. All of the provisions of the Sales and Use Tax Law, as amended and in force and effect on July 1, 1956, except the provisions thereof pertaining solely to the Use Tax and Sections 6051, 6052, 6053, 6066, 6067, 6068, 6069, 6070, 6071, 6451, 7052, 7056, 7101, 7102, 7151, 7152 and 7153, applicable to sales of property at retail, are adopted and made a part of this chapter as though fully set forth herein, and all provisions of any other section or chapter in conflict therewith are inapplicable to this chapter, and the tax imposed.

B. The term "gross receipts," as used in this chapter, does not include the amount of any tax imposed by the state of California upon or with respect to retail sales whether imposed upon the retailer or upon the consumer.

C. The term "sale" means and includes, in addition to the meanings contained in subsection A of this section, the withdrawal by a retailer in this city of tangible personal property from a place in this city, from a place in California outside this city under the control of the retailer or from a place in California outside this city at the order of the retailer, for delivery in any manner at a point in California outside this city under such circumstances that the transaction of which the withdrawal is a part would have been considered a sale within the meaning of subsection A of this section had the point of delivery been within this city; provided, however, that withdrawals pursuant to a transaction in foreign or interstate commerce shall not be sales for the purpose of this section. Charges made for the delivery of tangible personal property so withdrawn shall be included in the grass receipts by which the tax imposed under this section is measured unless such charges are separately stated and are imposed for transportation which occurs after the sale of property to the purchaser.

D. All of the provisions of the Sales and Use Tax Law adopted, providing for the adoption of rules and regulations and for hearings on the part of the State Board of Equalization, shall be performed by the city council of the city. All other provisions of the Sales and Use Tax Law adopted, providing for the performance of official action on the part of the State Board of Equalization, shall be performed by the city finance officer.

E. The city shall be deemed substituted for the state whenever the state is referred to in the Sales and Use Tax Law.

F. The city attorney shall be substituted for the Attorney General whenever the Attorney General is referred to in the Sales and Use Tax Law.

G. The city finance officer shall be substituted for the State Controller whenever the State Controller or State Board of Control are referred to in the Sales and Use Tax Law.

H. The county of Merced shall be substituted for the county of Sacramento whenever the county of Sacramento is referred to in the Sales and Use Tax Law.

(Prior code § 26.41)

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 Part 1.5 of Division 2 of the Revenue and Taxation Code by any city and 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 United States, or any foreign government.

F. 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 is exempted from the use tax.

(Ord. 1514 § 2, 1983: prior code § 26.42).

A. The rules and regulations of the State Board of Equalization as amended and in force and effect on July 1, 1956, pertaining to the interpretation, administration and enforcement of the Sales and Use Tax Law, insofar as applicable, except Rule No. 55, (Section 2015, Title 19, California Administrative Code, Sales and Use Taxi shall apply in the interpretation of this chapter until specifically abandoned by the rules and regulations adopted by the city council pursuant to this chapter. The word "city" shall be substituted for the word "state" whenever the word "state" appears in said rules and regulations.

B. In lieu of Rule No. 55, specifically excepted in subsection A, the following interpretations shall apply in the administration of this chapter:

1. The sales tax does not apply to sales of property which is:

a. Imported into this city from a foreign country and sold by the importer in the original package in which imported;

b. Sold to foreign purchasers for shipment abroad and delivered to a ship, airplane, or other conveyance furnished by the purchaser for the purpose of carrying the property abroad and actually carried to a foreign destination, title and control of the property passing to the foreign purchaser upon delivery, and no portion of the property being used or consumed in the United States. Copies of U.S. Customs Shippers export declarations filed with the collector of customs must be obtained and retained by retailers to support deductions taken under this subdivision. The tax applies to the transaction if the property is diverted in transit or for any reason not actually delivered outside the city pursuant to the contract of sale or not shipped abroad by a foreign purchaser, regardless of documentary evidence held by the retailer of delivery of the property to be carried for shipment outside the city, or to a foreign purchaser for shipment abroad;

c. Mailed by the seller, pursuant to the contract of sale, to persons in the armed forces at points outside continental United States, notwithstanding the property is addressed in care of the postmaster and forwarded by him to the addressee. When mail is addressed to Army post offices (A/P/O's) in care of the postmaster or to naval forces addressed in care of the postmaster, it will be presumed that it is forwarded outside California. The seller must keep records showing the names and addresses as they appear on the mailed matter and should keep evidence that the mailing was done by him;

d. Shipped to a point outside this city pursuant to the contract of sale when the property is marked for export and delivered by the retailer to the contracting officer, officer in charge, port quartermaster, or other officer of the United States for transportation and delivery to the purchaser at such a point.

2. The sales tax does not apply to sales of airplanes, and parts and equipment for airplanes, transported to a point outside this city pursuant to the contract of sale when such property is delivered to the United States Army Corps or any other agency or instrumentality of the United States for transportation and delivery to the purchaser or someone designated by him at that point.

3. The sales tax does not apply (either in interstate or intrastate commerce) to sales of property shipped from a point outside the city to a purchaser inside the city, or to the retailer's agent in the city, for deliver to the purchaser, if none of the elements of sale, other than such delivery, takes place in the city.

4. The sales tax does apply (either in interstate or intrastate commerce) to sales of property shipped from a point outside of the city, to a purchaser inside the city, or to the retailer's agent in the city, for delivery to the purchaser where any element of the sale, in addition to such delivery, takes place in the city.

5. "Element of sale" means and includes solicitation of an order, the acceptance of an order, the giving of an order, whether such order is given in person, by telephone, or by mail, or the payment of the purchase price.

6. The city finance officer may approve the payment of the sales tax by retailers located outside the city in accordance with a formula if he finds that the formula will produce the same or approximately the same tax as if detailed accounting procedures had been followed. A retailer desiring to use such a formula shall furnish such information as may be rewired by the city finance officer to enable him to make the required finding. The formula may be used by the retailer for such period of time, not to exceed one (1) year, as may be authorized by the city finance officer in writing, and is subject to renewal upon application for periods not to exceed one (1) year.

C. Payment in full of sales taxes in accordance with an approved formula shall constitute full satisfaction of the retailer's sales tax liability. Prior code § 26.43).

The inclusion of any clause, portion or part of the State Sales and Use Tax Law, Part 1, Division 2, of the Revenue and Taxation Code of the state, or the rules and regulations of the State Board of Equalization, verbatim in this chapter shall not in or of itself exclude any of the remaining provisions of said Sales and Use Tax Law or rules and regulations that are made a part hereof by reference only.

(Prior code § 26.44).

Every person desiring to engage in or conduct business as a seller within the city shall file with the city finance officer an application for a permit for each place of business from which taxable sales will be made. Every application for a permit shall be made upon a form prescribed by the city finance officer and shall set forth the name under which the applicant transacts or intends to transact business, the location of his place or places of business, and such other information as the city finance officer may require. The application shall be signed by the owner, if a natural person; in the case of a corporation, by an executive officer or same person specifically authorized by the corporation to sign the application, to which shall be attached the written evidence of his authority.

(Prior code § 26.45).

After compliance with Section 3.28.070 by the applicant, the city finance officer shall grant and issue to each applicant a separate permit for each place of business from which taxable sales will be made. A permit is not assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated therein; provided, however, a change of location may be endorsed upon the permit by the city finance officer. The permit shall at all times be conspicuously displayed at the place for which issued.

(Prior code § 26.46).

At the time of making an application for permit, and at the time a change of location is endorsed upon a permit, the applicant for permit or for an endorsement of a change of location on a permit shall pay to the city finance officer a fee of one dollar ($1.00).

(Prior code § 26.46.1).

Whenever any person fails to comply with any of the provisions of this chapter or any rule or regulation adapted pursuant hereto, the city council, upon hearing, after giving the person ten (10) days' notice in writing specifying the time and place of hearing and requiring him to show cause why his permit or permits should not be revoked, may revoke or suspend any one or mare of the permits held by the person. The notice may be served personally or by mail in the manner prescribed for the service of notice of a deficiency determination under the Sales and Use Tax Law. The city finance officer shall not issue a new permit after the revocation of a permit unless the city council of the city is satisfied that the former holder of a permit will comply with the provisions of this chapter and the rules and regulations adapted pursuant hereto and directs the city finance officer to issue such permit,

(Prior code § 26.47).

A seller whose permit has been previously suspended or revoked shall pay the city finance officer a fee of one dollar ($1.00) for the renewal or issuance of a permit.

(Prior code § 26.48).

A person who engages in business as a seller in the city without a permit or permits, or after a permit has been suspended or revoked and before the renewal or issuance of a permit, and each officer of any corporation which so engages in business, is guilty of a misdemeanor.

(Prior code § 26.49).

The taxes imposed by this chapter are due and payable to the city finance officer on or before the last day of the month next succeeding each quarterly period, the first quarterly payment to be due and payable under this chapter on October 31, 1956. The city finance officer may rewire returns and payment of the amount of taxes for quarterly periods other than calendar quarters depending upon the principal place of or the nature of the business of the seller or retailer or may require returns and payment of the amount of taxes for other than quarterly periods.

(Prior code § 26.50).

The tax imposed shall be collected by the retailer from the consumer insofar as it can be done.

(Prior code § 26.51).

It is unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold or that, if added, it or any part thereof will be refunded. Any person violating any provision of this section is guilty of a misdemeanor.

(Prior code § 36.52).

All taxes levied shall be payable to the city finance officer and any civil suit for the collection thereof may be filed in any court of competent jurisdiction in the state, and the city attorney of the city shall prosecute the action.

(Prior code § 26.53).

The city finance officer may at his option accept a state resale certificate as evidence that any sale is not a sale at retail, or he may in his discretion require an affidavit from the seller setting forth such information respecting such sale as he deems necessary to determine the nature of such sale.

(Prior code § 26.54).

The city finance officer shall have power, for good cause shown, to extend for a period of not to exceed thirty (30) days the time for making any return or paying any amount required to be paid under this chapter, when requested so to do in writing, before the same becomes delinquent. The city finance officer may, with the written approval of the city attorney, waive or compromise any penalty or interest that would otherwise accrue under the provisions of this chapter. The city finance officer shall make and transmit to the city council quarterly a detailed report of any sums so waived or compromised with the reasons therefor.

(Prior code § 26.54.1).

All moneys collected under and pursuant to the provisions of this chapter shall be deposited and paid as follows: seven-sixteenths thereof to the capital outlays fund established by Section 1113 of the Charter, and nine-sixteenths thereof to the general fund of the city.

(Prior code § 26.55).

It is unlawful for any officer or employee of the city having an administrative duty under this chapter to make known in any manner whatever the business affairs, operations, or information obtained by an investigation of records and equipment of any retailer or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth or disclosed in any return, or to permit any return or copy thereof or any book containing any abstract or particulars thereof to be seen or examined by any person. However, the city council may, by resolution, authorize examination of the returns by federal or state officers or employees or by the tax officer of this or any other city if a reciprocal arrangement exists. Successors, receivers, trustees, executors, administrators, assignees, and guarantors, if directly interested, may be given information as to the items included in the measure and amounts of any unpaid tax or amounts of tax required to be collected, interest and penalties.

(Prior code § 26.56).

Any person required to make, render, sign or verify any report under the provisions of this chapter, who makes any false or fraudulent return, with intent to defeat or evade the determination of an amount due and required to be paid hereunder, is guilty of a misdemeanor.

(Prior code § 26.57).

Any person violating any of the terms of this chapter shall be deemed guilty of a misdemeanor.

(Prior code § 26.58).