Chapter 3.18 — TRANSACTIONS AND USE TAX

This chapter shall be known as the "Transactions and Use Tax Ordinance." The City of Oroville hereinafter shall be called "city." This chapter shall be applicable in the incorporated area of the city. The transactions and use tax is a general tax enacted solely for unrestricted general revenue purposes for the city and not for specific purposes. All the proceeds from the tax imposed by this chapter shall be placed in the city's general fund and can be used for unrestricted general revenue purposes.

(Ord. 1829 § 1, 2018)

"Operative date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of the ordinance codified in this chapter, the date of such adoption being November 6, 2018.

(Ord. 1829 § 1, 2018)

This chapter is adopted to achieve the following, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

• A. To maintain and preserve City of Oroville public services, including police protection, fire suppression, vehicle repair and maintenance, finance analyst and human resources services with the city.

• B. To impose a retail transactions and use tax in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the city to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

• C. To adopt a retail transactions and use tax ordinance that 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 Part 1.6 of Division 2 of the Revenue and Taxation Code.

• D. To adopt a retail transactions and use tax ordinance that imposes a 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 practicable to, and requires the least possible deviation from the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.

• E. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions 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.

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City of Oroville, CA

OROVILLE CODE

§ 3.18.030

§ 3.18.075

(Ord. 1829 § 1, 2018)

Prior to the operative date, the city shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the city shall not have contracted with the California Department of Tax and Fee Administration 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 contract. (Ord. 1829 § 1, 2018)

For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers in the incorporated area of the city 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 said area. (Ord. 1829 § 1, 2018)

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 or her or its agent to an out-of-state destination or to a common carrier for delivery to an out-ofstate 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 of California 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 California Department of Tax and Fee Administration.

(Ord. 1829 § 1, 2018)

A complementary tax is hereby imposed on the storage, use, or other consumption in the incorporated area of the city on tangible personal property purchased from any retailer after the operative date of this chapter for storage, use, or other consumption in such area at the rate of one percent 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.

(Ord. 1829 § 1, 2018)

• A. The city council shall establish and appoint a citizens' oversight committee.

• B. The citizens' oversight committee shall consist of a 9-member board of residents and/or business owners and 2 elected city council members of the City of Oroville.

• C. The purpose of the citizens' oversight committee shall be to meet with the city's department heads during the preparation of each fiscal year budget until the ordinance codified in this

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City of Oroville, CA

REVENUE AND FINANCE

§ 3.18.075

§ 3.18.090

chapter sunsets, to make recommendations to the city council regarding how the proceeds from the implementation of the ordinance will be allocated for the ensuing budget year. The committee shall make recommendations to the council to provide for local public services, including, but not limited to, police protection, fire suppression, vehicle repair and maintenance, finance analyst and human resources services that will improve the quality of life for residents and businesses within the City of Oroville. The committee shall meet at least quarterly during the fiscal year to ensure that the revenue generated by the ordinance is allocated and disbursed in accordance with the city budget. All quarterly and annual budget reports from the committee shall be published on the City of Oroville website prior to council adoption of the budget and will be available for public review. (Ord. 1829 § 1, 2018)

Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this chapter as though fully set forth herein. (Ord. 1829 § 1, 2018)

In adopting the provisions of Part 1 Division 2 of the Revenue and Taxation Code:

• A. Wherever the State of California is named or referred to as the taxing agency the name of this city shall be substituted therefor. However, the substitution shall not be made when:

  1. The word "State" is used as a part of the title of the State Controller, State Treasurer, Victim Compensation and Government Control Board, State Board of Equalization, State Treasury or the Constitution of the State of California;

  2. The result of that substitution would require action to be taken by or against this city or any agency, officer or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this chapter.

  3. In those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the State of California where the result of the substitution would be to:

     • a. 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

     • b. 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 provision of that code.

  4. In Section 6701, 6702 (except in the last sentence thereof), 6711, 6715,6737, 6797 or 6828 of the Revenue and Taxation Code.

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City of Oroville, CA § 3.18.090

OROVILLE CODE

§ 3.18.110

• B. The word "city" shall be substituted for the word "state" in the phrase "retainer engaged in business in this state" in Section 6203 and in the definition of that phrase in Section 6203.

• (Ord. 1829 § 1, 2018)

If a seller's permit has been issued to a retailer under Section6067 of the Revenue and Taxation Code an additional transaction's permit shall not be required by this chapter. (Ord. 1829 § 1, 2018)

• A. There shall be excluded from the measure of the transactions tax and the use tax in the amount of any sales tax or use tax imposed by the State of California or by any city, city and county or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state administered transactions or use tax.

• B. There shall be exempted from the computation of the amount of transactions tax the gross receipts from:

  1. Sales of tangible personal property, other than fuel or petroleum products to operators of aircraft to be used or consumed principally outside the county 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.

  2. Sales of property to be used outside the city which is shipped to a point outside the city pursuant to the contract of sale by delivery to such point by the retailer or his, her or its agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purpose of this paragraph, delivery to a point the city shall be satisfied.

     • a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code and undocumented vessels registered under Chapter 2 of Division 3.5 commencing with Section 9840) if the Vehicle Code by registration to an out-of-city address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is in fact, his or her principal place of residence; and

     • b. With respect to commercial vehicles, by registration to a place of business outof-city and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

  3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter.

  4. A lease of tangible personal property which is a continuing sale of such property for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this chapter.

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City of Oroville, CA

REVENUE AND FINANCE

§ 3.18.110

§ 3.18.110

5. For the purposes of subsection (B)(3) and (4) of this section the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

• C. There are exempted from the use tax imposed by this chapter, the storage, use, or other consumption in this city of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

   2. Other than fuel or petroleum products 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. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

   3. If the purchase is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter.

   4. If the possession of or the exercise of any right or power over the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for any amount fixed by a lease prior to the operative date of this chapter.

   5. For the purposes of subsection (C)(3) and (4) of this section, storage, use, or other consumption or possession of or exercise of any right or power over tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

   6. Except as provided in subsection (C)(7), a retailer engaged in business in the city shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property in the city or participates within the city in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly at a place of business of the retailer in the city or through any representative, agent, canvasser, solicitor subsidiary, or person in the city under the authority of the retailer.

   7. "A retailer engaged in business in the city" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the city.

• D. Any person subject to use tax under this chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a

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City of Oroville, CA § 3.18.110

OROVILLE CODE

§ 3.18.140

transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.

(Ord. 1829 § 1, 2018)

All amendments subsequent to the effective date of the ordinance codified in this chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not consistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this chapter; provided, however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter. (Ord. 1829 § 1, 2018)

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 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. (Ord. 1829 § 1, 2018)

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City of Oroville, CA

REVENUE AND FINANCE

§ 3.20.010

§ 3.20.030