Monterey Municipal Code Art. 2 Sales and Use Tax

The City Council hereby declares that this Article is adopted to achieve the following among other purposes, and directs that the provisions of this Article shall be interpreted in order to accomplish those purposes:

a.To adopt sales and use tax regulations which comply with the requirements and limitations contained in Part 1.5, Division 2, of the Revenue and Taxation Code of the state.

b.To adopt sales and use tax regulations which incorporate 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, Division 2, of such Revenue and Taxation Code.

c.To adopt sales and use tax regulations which impose a 1% tax and provide a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adopts 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 sales and use tax regulations which can be administered in a manner that will, to the degree possible consistent with the provisions of Part 1.5, Division 2, of such 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 Article.

This Article shall become operative on July 1, 1956 and prior thereto this City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of these sales and use tax regulations; provided, that if this City shall not have contracted with the State Board of Equalization, as above set forth prior to July 1, 1956, this Article shall not be operative until the first day of the first calendar quarter following the execution of such a contract by the City and by the State Board of Equalization; provided, that this Article shall not become operative prior to the operative date of the Uniform Local Sales and Use Tax Ordinance of the County.

a. Imposed.For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the City at the rate of 1% of 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 Article.

b. Consummation of retail sales.For the purposes of this Article, 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 at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the Board of Equalization.

c. State laws.Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5, Division 2, of the Revenue and Taxation code of the state, all of the provisions of Part 1, Division 2, of such code, as amended and in force and effect on April 1, 1956, applicable to sales taxes are hereby adopted and made a part of this Section as though fully set forth herein.

d. City named as taxing agency.Wherever, and to the extent that, in Part 1, Division 2 of such State Revenue and Taxation Code, the state is named or referred to as the taxing agency, the City shall be substituted therefor. Nothing in this subsection shall be deemed to require the substitution of the name of the City for the word “state” when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, or the name of the State Treasury, or of the Constitution of the State; nor shall the name of the City be substituted for that of the state in any section when the result of that 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 Article; and neither shall the substitution be deemed to have been made in those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the state where the result of the substitution would be to provide an exemption from this tax with respect to certain gross receipts which would not otherwise be exempt from this tax while those gross receipts remain subject to tax by the state under the provisions of Part 1, Division 2 of such Revenue and Taxation Code; nor to impose this tax with respect to certain gross receipts which would not be subject to tax by the state under the provisions of that code; and, in addition, the name of the City shall not be substituted for that of the state in Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797, and 6828 of such Revenue and Taxation Code, as adopted.

e. Seller’s permit.If a seller’s permit has been issued to a retailer under Section 6068 of such Revenue and Taxation Code, an additional seller’s permit shall not be required by reason of this Section.

f. Exclusion from gross receipts.There shall be excluded from the gross receipts by which the tax is measured the following:

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

2.Receipts from sales to operators of common carriers and waterborne vessels of property to be used or consumed in the operation of such common carriers or waterborne vessels principally outside of this City.

a.An excise tax is hereby 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 Article for storage, use or other consumption in the City at the rate of 1% 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.

b.Except as provided in this Article, and except insofar as they are inconsistent with the provisions of Part 1.5, Division 2, of the Revenue and Taxation Code of the state, all of the provisions of Part 1, Division 2 of such code, as amended and in force and effect on April 1, 1956, applicable to use taxes, are hereby adopted and made a part of this Section as though fully set forth herein.

c.Wherever and to the extent that in Part 1, Division 2 of such Revenue and Taxation Code, the state is named or referred to as the taxing agency, the name of this City shall be substituted therefor. Nothing in this subsection shall be deemed to require the substitution of the name of this City for the word “state” when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, or the name of the State Treasury, or of the Constitution of the state; nor shall the name of the City be substituted for that of the state in any section when the result of that 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 Article; and neither shall the substitution be deemed to have been made in those sections, including but not necessarily limited to, sections referring to the exterior boundaries of the state, where the result of the substitution would be to provide an exemption of tangible personal property which would not otherwise be exempt from this tax while such storage, use or other consumption remains subject to tax by the state under the provisions of Part 1, Division 2 of such Revenue and Taxation Code, or to impose this tax with respect to certain storage, use or other consumption of tangible personal property which would not be subject to tax by the state under such provisions of that code; and in addition the name of the city shall not be substituted for that of the state in Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797, and 6828 of such Revenue and Taxation Code, as adopted, and the name of the City shall not be substituted for the word “state” in the phrase “retailer engaged in business in this state” in Section 6203 nor in the definition of that phrase in Section 6203.

d.There shall be exempt from the tax due under this Section, the following:

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

2.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, Division 2 of such Revenue and Taxation Code by any city and county, county or city in this state.

3.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 in intrastate, interstate or foreign commerce by public utilities which are regulated by the Public Utilities Commission of the state.

4.The use or consumption of property purchased by operators of common carrier and waterborne vessels to be used or consumed in the operation of such common carriers or waterborne vessels principally outside the City.

All amendments of the Revenue and Taxation Code of the state, enacted subsequent to the operative date of this Article, which relate to the sales and use tax and which are not inconsistent with Part 1.5, Division 2 of such Revenue and Taxation Code, shall automatically become a part of this Article.

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 Article or Part 1.5, Division 2 of the Revenue and Taxation Code of the state of any tax or any amount of tax required to be collected.

At the time this Article goes into operation, the provisions of Ordinance Nos. 820 C.S. and 821 C.S. of the City, as amended, 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 hereby imposed; provided, that if for any reason it is determined that the City is without power to adopt this Article, 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 Article, the provisions of Ordinance Nos. 820 C.S. and 821 C.S., as amended, shall not be deemed to have been suspended, but shall be deemed to have been in full force and effect at the rate of 1% 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 Article, the provisions of Ordinance Nos. 820 C.S. and 821 C.S., as amended, shall again be in full force and effect at the rate of 1%. Nothing in this Article 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 Ordinance Nos. 820 C.S. and 821 C.S., as amended, in force and effect prior to and including June 30, 1956.