Ridgecrest Municipal Code § 9-53 Use tax rate

(a) The purpose of this article is to impose a retail transactions and use tax in accordance with the provisions of the Revenue and Taxation Code which authorizes the city to adopt this tax if a majority of the qualified voters of the city vote to approve the imposition of the tax. Unlike the tax described in article IV of this chapter, this tax is subject to revocation by the voters.

(b) "Operative date" means the first day of the first calendar quarter commencing more than 110 days after the later of the adoption of this ordinance and article, the date of such adoption being as set forth on the ordinance that adopted this article, or the approval of the voters of the city of a measure approving the imposition of the transaction and use tax set forth herein; provided, that if the city shall not have entered into a contract with the state board as required herein prior to such date, the operative date shall be the first day of the first calendar quarter following execution of such a contract.

(c) When becoming operative, this measure automatically repeals and replaces Measure "V," which was passed by the citizens of Ridgecrest in November of 2016.

(d) 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 article; 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 a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

(Ord. No. 24-06, § 2, 12-4-2024)

Commencing on the operative date and continuing until ended by voters, for the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at a rate of one percent of the gross receipt of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this article. Such tax shall be in addition to any other transaction (sales) tax imposed by this Code or applicable state law.

(Ord. No. 24-06, § 2, 12-4-2024)

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 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. No. 24-06, § 2, 12-4-2024)

Commencing on the operative date and continuing until ended by voters, 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 incorporated territory of the city at a 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. Such tax shall be in addition to any other use tax imposed by this Code or applicable to state law. Specifically, this tax is in addition to the tax imposed by article IV of this Code.

(Ord. No. 24-06, § 2, 12-4-2024)

Except as otherwise provided in this article, and except insofar as they are inconsistent with the provisions Revenue and Taxation Code §§ 6001 et seq. and 7251 et seq. are hereby adopted and made a part of this article as though fully set forth herein.

(Ord. No. 24-06, § 2, 12-4-2024)

In adopting the provisions of part 1 of division 2 of the Revenue and Taxation Code:

(1) 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:

a. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, California Department of Tax and Fee Administration, State Treasury, or the Constitution of the State of California;

b. 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 article;

c. 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:

1. 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

2. 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 provision of that code;

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

(2) The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in section 6203 and in the definition to that phrase in section 6203.

(Ord. No. 24-06, § 2, 12-4-2024)

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

(Ord. No. 24-06, § 2, 12-4-2024)

(a) There shall be excluded from the measure of the transactions tax and the use tax 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 are exempted from the computation of the amount of transactions tax and 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 agent or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the city shall be satisfied:

a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Vehicle Code § 4000 et seq., aircraft licensed in compliance with Public Utilities Code § 21411, and undocumented vessels registered under Vehicle Code § 9840 et seq. 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 out-of-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 article.

(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 article.

(5) For the purposes of subsections (3) and (4) above, 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 article, 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 article.

(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 Revenue and Taxation Code §§ 6366 and 6366.1.

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

(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 an amount fixed by a lease prior to the operative date of this article.

(5) For the purposes of subsections (3) and (4) above, 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 (7) below, 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 into 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 Vehicle Code § 4000 et seq., aircraft licensed in compliance with Public Utilities Code § 21411, or undocumented vessels registered under Vehicle Code § 9840 et seq. 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 article may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Revenue and Taxation Code § 7251 et seq. 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. No. 24-06, § 2, 12-4-2024)

(a) All amendments subsequent to the effective date of this article to Revenue and Taxation Code § 6001 et seq. relating to sales and use taxes and which are not inconsistent with Revenue and Taxation Code §§ 7251 et seq. and 7280 et seq., and all amendments to Revenue and Taxation Code §§ 7251 et seq. and 7280 et seq., shall automatically become a part of this article, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this article.

(b) The city council may make amendments to this article that do not affect the rate of tax imposed without approval of the voters of the city. The city council may repeal this article by a two-thirds vote of the council without approval of the voters of the city, provided all indebtedness secured by the tax has been satisfied. The city council may amend the rate of tax imposed herein (increase or decrease) or extend the term of the tax only upon two-thirds vote of the council and with approval of the voters of the city.

(Ord. No. 24-06, § 2, 12-4-2024)

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 article, or Revenue and Taxation Code § 7251 et seq., of any tax or any amount of tax required to be collected.

(Ord. No. 24-06, § 2, 12-4-2024)

All proceeds of the tax levied and imposed under this article shall be paid into the general fund for use by the city.

(Ord. No. 24-06, § 2, 12-4-2024)