Merced Municipal Code Ch. 3.36 Local Sales and Use Tax

This chapter shall be known as the "uniform local sales and use tax ordinance" of the city.

(Prior code § 26.81).

The city council of the city declares that this chapter is 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 ordinance which complies with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Code of the state;

B. To adopt a sales and use tax ordnance 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 Revenue and Taxation Code;

C. To adopt a sales and use tax ordinance which imposes an .875 percent 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 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 state sales and use taxes;

D. To adopt a sales and use tax ordinance 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, 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.

(Prior code § 26.82).

This chapter shall be operative on October 1, 1974.

(Prior code § 26.83).

Prior to the operative date, this city shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this chapter; provided, that if this city has not contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such case the operative date shall be the first day of the first calendar quarter following the execution of such a contract rather than the first day of the first calendar quarter following the adoption of this chapter.

(Prior code § 26.83.1).

For the privilege of selling tangible personal property at retail, a tax is imposed upon all retailers in the city at the rate of .90 percent during the period from October 1, 1974 to and including June 30, 1975; and at the rate of .925 percent during the period from and after July 1, 1975; in each case, such percentage rate applying to 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.

(Prior code § 26.84).

For the purposes of this chapter, all retail sales shall be presumed to have been 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. Delivery charges shall be included in the gross receipts by which the tax is measured, regardless of the place to which delivery is made, when such charges are included in the measure of the sales or use tax imposed by the state. 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 retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization.

(Prior code § 26.84.1).

An excise tax is imposed on the storage, use or other consumption in the city of tangible personal property purchased from any retailer on or after the operative date of this chapter for storage, use or other consumption in the city at the following percentages of the sales price of the property: .90 percent during the period from October 1, 1974 to and including June 10, 1975; .925 percent during the period from and after July 1, 1975. 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.

(Prior code § 26.85).

Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.5 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 are adopted and made a part of this chapter as though fully set forth in this chapter.

(Prior code § 26.85.1).

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, wherever the state is named or referred to as the taxing agency, the name of this city 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; the substitution shall not be made when the result of such 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 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 this 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 remain subject to tax by the state under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, 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 that code; the substitution shall not be made in Sections 6701, 6702 except in the last sentence thereof), 6711, 6715, 6737, 6797 or 4828 of the Revenue and Taxation Code; and the substitution shall not be made for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 or in the definition of that phrase in Section 6203.

(Prior code § 26.85.2).

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

(Prior code § 26.85.3).

There shall be excluded from the measure of tax.

A. The amount of 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 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;

C. The gross receipts from sales to, and the storage, use or other consumption of property purchased by, operators of common carriers and waterborne vessels to be used or consumed in the operation of such common carriers or waterborne vessels principally outside this city;

D. The storage or use of tangible personal property in the transportation or transmission of persons, property or communications, or in the generation, transmission or distribution of electricity or in the manufacture, transmission or distribution of gas intrastate, interstate or foreign commerce by public utilities which are regulated by the public utilities commission of the state.

(Prior code 26.85.4).

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 Past 1.5 of Division 2 of the Revenue and Taxation Code by any city and county, county, or city in this state shall be exempted 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.

(Prior code § 26.85.5).

Section 3.36.120 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 is identical to the ratio which is required for local assessments by Section 401 of the Revenue and Taxation Code, at which time Section 3.36.110 shall become inoperative.

(Prior code § 26.85.6(a)).

In the event that Section 3.36.120 becomes operative and the State Board of Equalization subsequently adopts an assessment ratio for the state-assessed property which is higher than the ratio which is required for local assessments by Section 401 of the Revenue and Taxation Code, Section 3.36.110 shall become operative on the first day of the month next following the month in which such higher ratio is adopted, at which time Section 3.36.120 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 is identical to the ratio required for local assessments by Section 401 of the Revenue and Taxation Code, at which time Section 3.36.120 shall again become operative and Section 3.36.110 shall become inoperative.

(Prior code § 26.85.6(b)).

All subsequent amendments of the Revenue and Taxation Code which relate to the sales and use tax which are not inconsistent with Part 1.5 of Division 2 of the Revenue and Taxation Code shall automatically become a part of this chapter.

(Prior code § 26.86).

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 this city, or against any officer of the state or this city, to prevent or enjoin the collection under this chapter, or Part 1.5 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

(Prior code § 26.87).

At the time this chapter goes into operation, the provisions of Chapter 3.28 and Chapter 3.32 shall be suspended and shall not again be of any force or 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 tax imposed; provided, however, that if for any reason it is determined that the city is without power to adopt 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 Chapter 3.28 and Chapter 3.32 shall not be deemed to have been suspended, but shall be deemed to have been in full force and effect at the rate of one (1) percent continuously from and after July 1, 1956. 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 Chapter 3.28 and Chapter 3.32 shall again be in full force and effect at the rate of one (1) percent. 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 Chapter 3.28 and Chapter 3.32 in force and effect prior to and including June 30, 1956.

(Prior code § 26.88).

All moneys collected under and pursuant to the provisions of this chapter shall be deposited and paid into the general fund of the city.

(Ord. 1638 § 1, 1986: prior code § 26.89).

Any person violating any provisions of this chapter shall be guilty of a misdemeanor.

(Prior code § 26.90).