Monte Sereno Municipal Code Ch. 3.03 Sales and Use Tax

This Chapter shall be known as the "Local Sales and Use Tax ordinance."

The rate of sales tax and use tax imposed by this Chapter shall be one percent (1%) of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the City of Monte Sereno.

This Chapter shall be operative if and when the Santa Clara County Uniform Local Sales and Use Tax Ordinance; Division A30, Chapter II. Sales and Use Tax, of the Santa Clara County Code, becomes inoperative, pursuant to Section A30-19, thereof.

The City Council declares that 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:

To adopt a sales and use tax ordinance which complies with the requirements and limitations contained in Government Code Section 37101;

A. To adopt a sales and use tax ordinance which incorporates 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 Government Code Section 37101;

B. To adopt a sales and use tax ordinance which can be administered in a manner that will, to the degree possible, be consistent with the provisions of the Government Code Section 37101, 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.

C. To ensure that, if the Santa Clara County Uniform Local Sales and Use Tax ordinance becomes inoperative, this City will continue to receive this essential source of revenue.

The City Manager, or his designated representative, shall be responsible for the collection of all sales and use taxes provided for in this Chapter, and the performance of all functions incident to the administration and operation thereof. In connection therewith, the City Council may, from time to time, adopt, by Resolution, such rules and regulations as it may deem are needed effectively to implement this Chapter in a manner consistent therewith. Further, the City may enter into a joint powers agreement with any city in Santa Clara County, and/or the County, and/or any other governmental agency, for the centralized performance of any of the foregoing.

For the privilege of selling tangible personal property at retail, a tax is imposed upon all retailers in the City at the rate stated in Section 3.03.020 of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in this City on and after the operative date.

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.

An excise tax is imposed on the storage, use or other consumption of this City of tangible personal property purchased from any retailer on and after the operative date for storage, use or other consumption in this City at the rate stated in Section 3.03.020 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.

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, so far as they may be applicable, 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 herein.

In adopting the provisions of Part 1 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 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 of California; the substitution shall not be made in those sections, including, but not necessarily limited to, sections referred 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 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 said 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 6828 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.

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.

There shall be excluded from the gross receipts by which the tax is measured:

The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

A. The gross receipts from the sale of tangible personal operators of aircraft to be used principally outside the city in which made and directly and exclusively in the aircraft as common carriers of persons under the authority of the laws of the United States, or any foreign government.

B. The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

C. 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 or exclusively in the carriage of persons or property in such vessels for commercial purposes.

D. 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.

There shall be exempt from the tax due under this section:

The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

A. 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.

B. 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 in such vessels for commercial purposes.

C. 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.

Section 3.03.030 of this Chapter shall become operative on January 1st 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 3.03.110 of this Chapter shall become inoperative.

A. In the event that Section 3.03.030 of this Chapter 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, at which time Section 3.03.030 shall again become operative and Section 3.03.110 shall become inoperative.

All subsequent amendments of the Revenue and Taxation Code which relate to the sales and use tax and which are not consistent with Part 1.5 of Division 2 of the Revenue and Taxation Code, so far as applicable, shall automatically become a part of this Chapter.

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, so far as applicable, of any tax or any amount of tax required to be collected.

Sections 3.03.120 and 3.03.130 shall be operative on the operative date of any act of the Legislature of the State of California which amends or repeals and reenacts Section 7202 of the Revenue and Taxation Code to provide an exemption from city sales and use taxes for operators of waterborne vessels in the same, or substantially the same, language as that existing in subdivisions (i)(7) and (i)(8) of Section 7202 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983.