Chapter 5 — SALES AND USE TAXES

*Sections 3-5.01 through 3-5.08 codified from Ord. 1131, eff. March 7, 1956, as amended by Ord. 1155, eff. June 13, 1956, Ord. 1261, eff. October 1, 1957, Ord. 1451, eff. January 1, 1962, and Ord. 1565, eff. May 20, 1964 superseded by § 1, Ord. 1816, eff. January 1, 1974. Sections 3-5.01 through 3-5.19 added by Ord. 1816, eff. January 1, 1974, amended in their entirety by § 1, Ord. 1873, eff. January 1, 1976, operative January 1, 1976. 3-5.01 Short title 3-5.02 Rate 3-5.03 Operative date 3-5.04 Purpose 3-5.05 Contract with State Board of Equalization 3-5.06 Sales taxes 3-5.07 Place of sale 3-5.08 Use taxes 3-5.09 Adoption of State law provisions 3-5.10 Limitations on adoption of State law provisions 3-5.11 Permits not required 3-5.12 Exclusions and exemptions 3-5.13 Amendments 3-5.14 Enjoining collection forbidden 3-5.15 Violations: Penalties (Repealed) 3-5.16 Severability 3-5.17 Repeal of former provisions 3-5.18 Effective date

This chapter shall be known as the “Uniform Local Sales and Use Tax Law” of the City. (§ 1, Ord. 1873, eff. January 1, 1976)

The rate of the sales tax and use tax imposed by the provisions of this chapter shall be one percent (1%). (§ 1, Ord. 1873, eff. January 1, 1976)

The provisions of this chapter shall be operative on January 1, 1976. (§ 1, Ord. 1873, eff. January 1, 1976)

The Council hereby declares that the provisions of this chapter are 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 law which complies with the requirements and limitations set forth in Part 1.5 of Division 2 of the Revenue and Taxation Code of the State (commencing with Cal. Rev. & Tax. Code § 7200); (b) To adopt a sales and use tax law 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 set forth in Part 1.5 of Division 2 of the Revenue and Taxation Code of the State (commencing with Cal. Rev. & Tax. Code § 7200); (c) To adopt a sales and use tax law which imposes a tax and provides a measure therefor which can be administered and collected by the State Board of Equalization in a manner which 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 sales and use taxes of the State; and (d) To adopt a sales and use tax law 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 said Revenue and Taxation Code (commencing with Cal. Rev. & Tax. Code § 7200), 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. (§ 1, Ord. 1873, eff. January 1, 1976)

Prior to the operative date of this chapter, the City shall contract with the State Board of Equalization to perform all the functions incident to the administration and operation of this sales and use tax law; provided, however, if the City shall not have contracted with the State Board of Equalization prior to such operative date, the City 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 rather than the first day of the first calendar quarter following the adoption of this chapter. (§ 1, Ord. 1873, eff. January 1, 1976)

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the City at the rate set forth in § 3-5.02 of this chapter 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 chapter. (§ 1, Ord. 1873, eff. January 1, 1976)

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. (§ 1, Ord. 1873, eff. January 1, 1976)

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 chapter for the storage, use, or other consumption in the City at the rate set forth in § 3-5.02 of this chapter 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. (§ 1, Ord. 1873, eff. January 1, 1976)

Except as other wise 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 of the State (commencing with Cal. Rev. & Tax. Code § 7200), all of the provisions of Part 1 of Division 2 of the Revenue and Taxation Code (commencing with Cal. Rev. & Tax. Code § 6001) are hereby adopted and made a part of this chapter as though fully set forth in this chapter. (§ 1, Ord. 1873, eff. January 1, 1976)

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code of the State (commencing with Cal. Rev. & Tax. Code § 6001), wherever the State is named or referred to as the taxing agency, the name of the City shall be substituted therefor. Such 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 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 the provisions 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 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 remains subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code (commencing with Cal. Rev. & Tax. Code § 6001), 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 the Code; the substitution shall not be made in Cal. Rev. & Tax. Code §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797, or 6828; and the substitution shall not be made for the word “State” in the phrase “retailer engaged in business in this State” in Cal. Rev. & Tax. Code § 6203 or in the definition of that phrase in Cal. Rev. & Tax. Code § 6203. (§ 1, Ord. 1873, eff. January 1, 1976)

If a seller's permit has been issued to a retailer pursuant to the provisions of Cal. Rev. & Tax. Code § 6067, an additional seller's permit shall not be required by the provisions of this chapter. (§ 1, Ord. 1873, eff. January 1, 1976)

(a) The amount subject to tax shall not include any sales or use tax imposed by the State of California 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 (commencing with Cal. Rev. & Tax. Code § 7200) by any city and county, 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 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. (d) In addition to the exemptions provided in Cal. Rev. & Tax. Code §§ 6366 and 6366.1, 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. (§ 1, Ord. 1873, eff. January 1, 1976, as amended by § 1, Ord. 2264, eff. December 21, 1983)

All subsequent amendments of the Revenue and Taxation Code of the State, which amendments relate to sales and use taxes and which are not inconsistent with the provisions of Part 1.5 of Division 2 of said Revenue and Taxation Code (commencing with Cal. Rev. & Tax. Code § 7200), shall automatically become a part of this chapter. (§ 1, Ord. 1873, eff. January 1, 1976)

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 the City, or against any officer of the State or the City, to prevent or enjoin the collection under this chapter or Part 1.5 of Division 2 of the Revenue and Taxation Code of the State (commencing with Cal. Rev. & Tax. Code § 7200) of any tax or any amount of tax required to be collected. (§ 1, Ord. 1873, eff. January 1, 1976)

(§ 1, Ord. 1873, eff. January 1, 1976, repealed by § 5, Ord. 2094, eff. August 14, 1980)

If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the remainder of the chapter and the application of such provision to other persons or circumstances shall not be affected thereby. (§ 1, Ord. 1873, eff. January 1, 1976)

Ordinance No. 1816 (Chapter 5 of Title 3 of this Code) relating to the imposition of a sales and use tax in the City is repealed effective January 1, 1976. (§ 1, Ord. 1873, eff. January 1, 1976)

The provisions of this chapter shall take effect January 1, 1976. (§ 1, Ord. 1873, eff. January 1, 1976)