Chapter 34 — TAXATION

This subchapter shall be known as the Real Property Transfer Tax Ordinance of the City of Riverbank . It is adopted pursuant to the authority contained in Cal. Rev. & Tax. Code §§ 11901 et seq . (`67 Code, § 3-8-1)

(A) There is hereby imposed on each deed, instrument or writing by which any lands, tenements, other realty sold within the city shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his or their direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrances remaining thereon at the time of sale) exceeds $100, a tax at the rate of $0.275 for each $500 or fractional part thereof.

(B) Any tax imposed pursuant to this section shall be paid by any person who makes, signs or issues any document or instrument subject to the tax, or for whose use or benefit the same is made, signed or issued.

(C) Any tax imposed pursuant to this subchapter shall not apply to any instrument in writing given to secure a debt. (D) The exemptions set forth in Cal. Rev. & Tax. Code §§ 11921 through 11930 shall apply to any tax imposed pursuant to the subchapter.

(`67 Code, § 3-8-2)

Any deed, instrument, or writing to which the United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, is a party shall be exempt from any tax imposed pursuant to this subchapter when the exempt agency is acquiring title.

(Cal. Rev. & Tax. Code § 11922) (`67 Code, § 3-8-3)

(A) Any tax imposed pursuant to this chapter shall not apply to the making, delivering or filing of conveyances to make effective any plan of reorganization or adjustment:

• (1) Confirmed under the Federal Bankruptcy Act, as amended;

• (2) Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in 11 USC 205(m), as amended;

• (3) Approved in an equity receivership proceeding in a court involving a corporation, as defined in 11 USC 506(3), as amended; or

• (4) Whereby a mere change in identity, form or place of organization is effected.

(B) Divisions (1) to (4), inclusive, of this section shall only apply if the making, delivery or filing of instruments of transfer or conveyances occurs within five years from the date of such confirmation, approval or change.

(Cal. Rev. & Tax. Code § 11923) (`67 Code, § 3-8-4) (Ord. 67-9, passed 1-27-67)

Any tax imposed pursuant to this subchapter shall not apply to the making or delivery of conveyances to make effective any order of the Securities and Exchange Commission, as defined in Section 1083(a) of the Internal Revenue Code of 1954, but only if:

(A) The order of the Securities and Exchange Commission in obedience to which such conveyance is made recites that such conveyance is necessary or appropriate to effectuate the provisions of 15 USC 79(K), relating to the Public Utility Holding Company Act of 1935.

• (B) Such order specifies the property which is ordered to be conveyed.

• (C) Such conveyance is made in obedience to such order.

• (Cal. Rev. & Tax. Code § 11924) (`67 Code, § 3-8-5) (Ord. 70-1, passed 1-12-70)

(A) In the case of any realty held by a partnership, no levy shall be imposed pursuant to this chapter by reason of any transfer of an interest in a partnership or otherwise, if:

(1) Such partnership (or another partnership) is considered a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1954; and

• (2) Such continuing partnership continues to hold the realty concerned.

(B) If there is a termination of any partnership within the meaning of Section 708 of the Internal Revenue Code of 1954, for purposes of this chapter, such partnership shall be treated as having executed an instrument whereby there was conveyed, for fair market value (exclusive of the value of any lien or encumbrance remaining thereon), all realty held by such partnership at the time of such termination.

(C) Not more than one tax shall be imposed pursuant to this subchapter by reason of a termination described in division (B), and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.

(Cal. Rev. & Tax. Code § 11925) (`67 Code, § 3-8-6)

The County Recorder shall administer this chapter in conformity with the provisions of Cal. Rev. & Tax. Code §§ 11901 et seq. and the provisions of any county ordinance adopted pursuant thereto. (`67 Code, § 3-8-7)

Claims for refund of taxes imposed pursuant to this subchapter shall be governed by the provisions of Cal Rev. & Tax. Code §§ 5096 et seq .

(`67 Code, § 3-8-8) (Ord. 67-9, passed 11-27-67)

SALES AND USE TAX

This subchapter shall be known as the Uniform Local Sales and Use Tax Ordinance . (`67 Code, § 6-2-1)

(A) For the privilege of selling tangible personal property at retail, a tax is imposed upon all retailers in the city at the rate of 0.995% of the gross receipts of the retailer from the sale of personal property sold at retail in the city, commencing for the fiscal year beginning July 1, 2006.

(B) The tax rate shall decrease each fiscal year at the rate of 0.005%, effective July 1 of each year.

(C) This decrease shall continue until the rate is reduced to 0.950%, at which time the rate shall remain at that level.

(`67 Code, § 6-2-2) (Am. Ord. 2006-005, passed 3-27-06)

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

(A) To adopt a sales and use tax ordinance which complies with the requirements and limitations contained in Cal. Rev. & Tax. Code §§ 7200 et seq. ;

(B) To adopt a sales and use tax ordinance 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 contained in Cal. Rev. & Tax. Code §§ 7200 et seq. ;

(C) To adopt a sales and use tax ordinance which 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 State Board of Equalization in administering and collecting the California State Sales and Use Taxes;

(D) To adopt a sales and use tax ordinance which can be administered in a manner that will, to the degree possible consistent with the provisions of Cal. Rev. & Tax. Code §§ 7200 et seq. , 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 subchapter.

(`67 Code, § 6-2-4)

The city shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this sales and use tax ordinance.

(`67 Code, § 6-2-5)

For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers in the city at a rate stated in § 34.21 of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in this city.

(`67 Code, § 6-2-6)

For the purposes of this subchapter, 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.

(`67 Code, § 6-2-7)

An excise tax is hereby imposed on the storage, use or other consumption in this city of tangible personal property purchased from any retailer for storage, use or other consumption in this city at the rate stated in § 34.21 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.

(`67 Code, § 6-2-8)

(A) Except as otherwise provided in this subchapter and except insofar as they are inconsistent with the provisions of Cal. Rev. & Tax. Code §§ 7200 et seq. , all of the provisions of Cal. Rev. & Tax. Code §§ 6001 et seq. are hereby adopted and made a part of this subchapter as though fully set forth herein. (`67 Code, § 6-2-9)

(B) In adopting the provisions of Cal. Rev. & Tax. Code §§ 6001 et seq. , wherever the state 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 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 subchapter; 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 remain subject to tax by the state under the provisions of Cal. Rev. & Tax. Code §§ 6001 et seq. , 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 that 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. (`67 Code, § 6-2-10)

If a seller's permit has been issued to a retailer under Cal. Rev. & Tax. Code § 6067, an additional seller's permit shall not be required by this subchapter.

(`67 Code, § 6-2-11)

(A) Exclusions and exemptions. There shall be excluded from the measure of the tax:

(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 Cal. Rev. & Tax. Code §§ 7200 et seq. by any city and county, county, or city in this state.

(3) The gross receipts from sales to, and the storage, use or other consumption of property purchased by, operators of common carriers and waterborne vessels to be used or consumed in the operation of such common carriers or waterborne vessels principally outside this city.

(4) 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.

(`67 Code, § 6-2-12) (Ord. 73-10, passed 9-24-73)

(B) Exclusions and exemptions.

(1) The amount subject to tax shall not include 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 have been subject to tax under a sales and use tax ordinance enacted in accordance with Cal. Rev. & Tax. Code §§ 7200 et seq. by any city and county, county or city, in this state shall be exempt from the tax due under this division (B).

(3) 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.

(4) 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.

(`67 Code, § 6-2-13)

(C) Exclusions and exemptions.

(1) The amount subject to tax shall not include 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 have been subject to tax under a sales and use tax ordinance enacted in accordance with Cal. Rev. & Tax. Code §§ 7200 et seq. by any city and county, county or city, in this state shall be exempt from the tax due under this division (C).

(3) 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 waterborne vessels to be used or consumed principally outside the city in which the sale is made and directly and exclusively in the carriage of persons or property in such vessels for commercial purposes.

(4) The storage, use of 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 of such vessels for commercial purposes is exempted from the use tax.

(5) 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.

(6) 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.

(`67 Code, § 6-2-13) (Ord. 83-14, passed 1-23-84)

(D) Application of provisions relating to exclusions and exemptions.

(1) Division (B) of this section shall become operative on January 1 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 Cal. Rev. & Tax. Code § 401, at which time division (A) of this section shall become inoperative.

(2) In the event that division (B) of this section 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 Cal. Rev. & Tax. Code § 401, division (A) of this section shall become operative on the first day of the month next following the month in which such higher ratio is adopted, at which time division (B) of this section shall be inoperative until the first day of the month following the month in which the Board again adopts an assessment ratio for state-assessed property which is identical to the ratio required for local assessments by Cal. Rev. & Tax. Code § 401, at which time division (B) shall again become operative and division (A) shall become inoperative.

(`67 Code, § 6-2-14)

Editor's note:

Division (B) of this section shall be operative January 1, 1984. Division (C) of this section shall be operative on the operative date of any act of the Legislature of the State of California which amends Cal. Rev. & Tax. Code § 7202 or which repeals and reenacts Cal. Rev. & Tax. Code § 7202 to provide an exemption from city sales and use taxes for operators of water-borne vessels in the same, or substantially the same, language as that existing in subdivisions (i)(7) and (i)(8) of section 7202 as those subdivisions read on October 1, 1983.

All subsequent amendments of the Revenue and Taxation Code which relate to the sales and use tax and which are not inconsistent with Cal. Rev. & Tax. Code §§ 7200 et seq . shall automatically become a part of this subchapter. (`67 Code, § 6-2-15)

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 subchapter, or Cal. Rev. & Tax. Code §§ 7200 et seq. , of any tax or any amount of tax required to be collected.

(`67 Code, § 6-2-16)

Any person violating any of the provisions of §§ 34.20 through 34.31 shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than $500 or by imprisonment for a period of not more than six months, or by both such fine and imprisonment. (`67 Code, § 6-2-17)

TRANSIENT OCCUPANCY TAX

This subchapter shall be known as the Uniform Transient Occupancy Tax Ordinance of the City of Riverbank. (Ord. 287, passed 12-13-65)

Except where the context otherwise requires, the definitions given in this section govern the construction of this subchapter.

HOTEL . Any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobilehome or house trailer at a fixed location, or other similar structure or portion thereof.

OCCUPANCY . The use or possession, or the right to the use or possession of any room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes.

OPERATOR . The person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where the operator performs his or her functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this subchapter and shall have the same duties and liabilities as his or her principal. Compliance with the provisions of this subchapter by either the principal or the managing agent shall, however, be considered to be compliance by both.

PERSON . Any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.

RENT . The consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including, all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever.

TAX ADMINISTRATOR . The City Administrator.

TRANSIENT . Any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this subchapter may be considered. (Ord. 287, passed 12-13-65)

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of four percent of the rent charged by the operator. Said tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the Tax Administrator may require that such tax shall be paid directly to the Tax Administrator.

(Ord. 287, passed 12-13-65)

(A) No tax shall be imposed upon:

• (1) Any person as to whom, or any occupancy as to which, it is beyond the power of the city to impose the tax herein provided;

• (2) Any federal or State of California officer or employee when on official business;

• (3) Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

• (B) No exemption shall be granted except upon a claim therefor made at the time rent is collected and under penalty of perjury upon a form prescribed by the Tax Administrator.

• (Ord. 287, passed 12-13-65)

Each operator shall collect the tax imposed by this subchapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator. No operator of a hotel shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if added, any part will be refunded except in the manner hereinafter provided.

(Ord. 287, passed 12-13-65)

Within 30 days after the effective date of this subchapter, or within 30 days after commencing business, whichever is later, each operator of any hotel renting occupancy to transients shall register said hotel with the Tax Administrator and obtain from him or her a transient occupancy registration certificate to be at all times posted in a conspicuous place on the premises. Said certificate shall, among other things, state the following:

• (A) The name of the operator;

• (B) The address of the hotel;

• (C) The date upon which the certificate was issued;

• (D) "This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has

fulfilled the requirements of the Uniform Transient Occupancy Tax Ordinance by registering with the Tax

Administrator for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the Tax Administrator. This certificate does not authorize any person to conduct any unlawful business or to conduct any

lawful business in an unlawful manner, nor to operate a hotel without strictly complying with all local applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of this city. This certificate does not constitute a permit."

(Ord. 287, passed 12-13-65)

Each operator shall, on or before the last day of the month following the close of each calendar quarter, or at the close of any shorter reporting period which may be established by the Tax Administrator, make a return to the Tax Administrator, on forms provided by him or her, of the total rents charged and received and the amount of tax collected for transient occupancies. At the time the return is filed, the full amount of the tax collected shall be remitted to the Tax Administrator. The Tax Administrator may establish shorter reporting periods for any certificate holder if he or she deems it necessary in order to insure collection of the tax and he or she may require further information in the return. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this subchapter shall be held in trust for the account of the city until payment thereof is made to the Tax Administrator.

(Ord. 287, passed 12-13-65)

(A) Original delinquency . Any operator who fails to remit any tax imposed by this subchapter within the time required shall pay a penalty of 10% of the amount of the tax in addition to the amount of the tax.

(B) Continued delinquency . Any operator who fails to remit any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of 10% of the amount of the tax in addition to the amount of the tax and the 10% penalty first imposed.

(C) Fraud . If the Tax Administrator determines that the non-payment of any remittance due under this subchapter is due to fraud, a penalty of 25% of the amount of the tax shall be added thereto in addition to the penalties stated in divisions (A) and (B) of this section.

(D) Interest . In addition to the penalties imposed, any operator who fails to remit any tax imposed by this subchapter shall pay interest at the rate of 0.5% per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

(E) Penalties merged with tax. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid. (Ord. 287, passed 12-13-65)

If any operator shall fail or refuse to collect said tax and to make, within the time provided in this subchapter, any report and remittance of said tax or any portion thereof required by this subchapter, the Tax Administrator shall proceed in such manner as he or she may deem best to obtain facts and information on which to base his or her estimate of the tax due. As soon as the Tax Administrator shall procure such facts and information as he or she is able to obtain upon which to base the assessment of any tax imposed by this subchapter and payable by any operator who has failed or refused to collect the same as to make such report and remittance, he or she shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this subchapter. In case such determination is made, the Tax Administrator shall give a notice of the amount so assessed by serving it personally or

by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his or her last known place of address. Such operator may within ten days after the serving or mailing of such notice make application in writing to the Tax Administrator for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the Tax Administrator shall become final and conclusive and immediately due and payable. If such application is made, the Tax Administrator shall give not less than five days written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in said notice why said amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the operator may appear and offer evidence why such specified tax, interest and penalties should not be so fixed. After such hearing the Tax Administrator shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after 15 days unless an appeal is taken as provided in § 34.54.

(Ord. 287, passed 12-13-65)

Any operator aggrieved by an decision of the Tax Administrator with respect to the amount of such tax, interest and penalties, if any, may appeal to the Council by filing a notice of appeal with the City Clerk within 15 days of the serving or mailing of the determination of tax due. The Council shall fix a time and place for hearing such appeal, and the City Clerk shall give notice in writing to such operator at his or her last known place of address. The findings of the Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.

(Ord. 287, passed 12-13-65)

It shall be the duty of every operator liable for the collection and payment to the city of any tax imposed by this subchapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the city, which records the Tax Administrator shall have the right to inspect at all reasonable times.

(Ord. 287, passed 12-13-65)

(A) Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the city under this subchapter, it may be refunded as provided in divisions (B) and (C) of this section provided a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Tax Administrator within three years of the date of payment. The claim shall be on forms furnished by the Tax Administrator.

(B) An operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the Tax Administrator that the person from whom the tax has been collected was not a transient; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the transient or credited to rent subsequently payable by the transient to the operator.

(C) A transient may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the city by filing a claim in the manner provided in division (A) of this section, but only when the tax was paid by the transient directly to the Tax Administrator, or when the transient having paid the tax to the operator, establishes to the satisfaction of the Tax Administrator that the transient has been unable to obtain a refund from the operator who collected the tax.

(D) No refund shall be paid under the provisions of this section unless the claimant establishes his or her right thereto by written records showing entitlement thereto.

(Ord. 287, passed 12-13-65)

Any tax required to be paid by any transient under the provisions of this subchapter shall be deemed a debt owed by the transient to the city. Any such tax collected by an operator which has not been paid to the city shall be deemed a debt owed by the operator to the city. Any person owing money to the city under the provisions of this subchapter shall be liable to an action brought in the name of the city for the recovery of such amount.

(Ord. 287, passed 12-13-65)

(A) Any person violating any of the provisions of this subchapter shall be guilty of a misdemeanor and shall be punishable therefor by a fine of not more than $500 or by imprisonment in the county jail for a period of not more than six months or by both such fine and imprisonment.

(B) Any operator or other person who fails or refuses to register as required herein, or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the Tax Administrator, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, and is punishable as aforesaid. Any person required to make, render, sign or verify any report or claim who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this subchapter to be made, is guilty of a misdemeanor and is punishable as aforesaid.

(Ord. 287, passed 12-13-65)

CANNABIS BUSINESS TAX

For the purpose of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:

BUSINESS. Professions, trades, occupations, gainful activities, and all and every kind of calling whether or not carried on for profit.

CANNABIS or MARIJUANA. Has the meaning as defined in Cal. Health & Safety Code § 11018.

CANNABIS BUSINESS. Any business activity involving the commercial cultivation, distribution, and exchange of cannabis, including, but not limited to, the planting, cultivation, harvesting, transporting, manufacturing, compounding, converting, processing, preparing, storing, packaging, providing, wholesale and retail sales, whether fixed, mobile, permanent, or temporary, where cannabis is made available, sold, given, distributed, or otherwise provided in accordance with the existing laws of the State of California, whether for medical or non-medical reasons. CITY. The City of Riverbank, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form.

COLLECTOR. The Director of Finance or other city officer or employee charged with the administration of this chapter.

FIXED PLACE OF BUSINESS. The premises occupied in the city for the particular purpose of conducting a business there and regularly kept open for that purpose with a competent person in attendance for the purpose of attending to such business.

GROSS RECEIPTS. The total amount charged or received for the performance of any act, service, or employment of whatever nature it may be, whether or not such service, act, or employment is done as a part of or in connection with the sale of goods, wares, merchandise, for which a charge is made or credit allowed. Gross receipts shall be calculated without any deduction on account of any of the following:

• (1) The cost of tangible property sold or bartered;

(2) The cost of materials or products used, labor or service cost, interest paid, losses, or other expense; or

• (3) Transportation costs.

PERSON. All domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, business or common law trusts, societies, and individuals transacting and carrying on any business in the city.

REPORTING PERIOD. A year, quarter, or calendar month, as determined by the Collector.

(Ord. 2018-008, passed 12-11-18)

(A) Every person engaged in a cannabis business shall pay an annual business license tax of up to $.10 for each $1 of gross receipts, regardless whether the city has authorized the cannabis business.

(B) The tax rate shall be set by resolution of the City Council. The City Council may, in its discretion, implement such cannabis business tax rate it deems appropriate, and may by resolution increase or lower such tax rate from time to time, provided that the cannabis business tax shall not exceed $.10 for each $1 of gross receipts.

(C) Any tax adopted by the City Council pursuant to this chapter shall apply only to those cannabis businesses operating outside the scope of a development agreement approved by the City Council. However, the tax may apply to all cannabis businesses in the event the City Council cancels the Cannabis Pilot Program.

(D) The Collector shall establish reporting periods for the periodic collection of gross receipts. The reporting period may fall under yearly, quarterly, or monthly reporting, or any reasonable reporting period established by the Collector.

(E) Failure to pay the cannabis business tax shall be subject to penalties, interest charges, and assessments as the City Council may establish by resolution, and the city may use any and all code enforcement remedies available at law to collect such payments.

(F) The payment of the cannabis business tax shall not be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner. Nothing in this section shall be applied or construed as authorizing the sale of cannabis.

(G) The Collector or his or her designee shall annually audit any cannabis business taxes imposed by this section to verify that tax revenues have been properly expended in accordance with the law.

(H) The cannabis business tax is not a sales tax and shall not be assessed as such.

(I) This section was submitted to the qualified voters of the city for approval. Any amendment to the maximum tax rate therefore may not become effective until such amendment is approved by the voters. The voters expressly authorize the City Council to amend, modify, change or revise any other provisions of this section as the City Council deems in the best interest of the city. The City Council or City Manager may promulgate rules, regulations and procedures to implement this section and to ensure the efficient and timely collection of any taxes or any related penalties imposed by this section.

(Ord. 2018-008, passed 12-11-18)