San Bruno Municipal Code Ch. 3.28 Sales and Use Tax

This chapter shall be known as "Uniform Local Sales and Use Tax Regulations" of the city.

(Prior code § 22-3.1; Ord. 1357 § 1, 1980; Ord. 1875 § 3, 2019)

The purpose of this chapter is to adopt sales and use tax regulations which:

A. Comply with and incorporate provisions of state sales and use tax law;

B. Impose a ninety-five hundredths of one percent (0.95%) tax which can be administered and collected by the state board of equalization in the manner most consistent with the board's existing procedures in state sales and use tax collection;

C. Can be administered so as to minimize both the cost of collecting city sales tax and the burden of record keeping of taxpayers.

(Prior code § 22-3.2; Ord. 1357 § 1, 1980; Ord. 1875 § 3, 2019)

A. Sales Tax. For the privilege of selling tangible personal property at retail, a tax is imposed upon all retailers in the city after the operative date of the ordinance codified in this article. 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.

B. Use Tax. An excise tax is imposed upon the storage, use, or other consumption in the city of tangible personal property purchased from any retailer on or after the operative date of the ordinance codified in this article for storage, use, or other consumption in the city at the rate of ninety-five hundredths of one percent (0.95%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to sales or use tax regardless of the place to which delivery is made.

(Prior code § 22-3.3; Ord. 1357 § 1, 1980; Ord. 1875 § 3, 2019)

A. There shall be exempt from the sales tax imposed by subsection A of Section 3.28.030 (Generally) the following:

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

2. 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.

B. There shall be exempt from the use tax imposed by subsection B of Section 3.28.030 (Generally) the following:

1. The amount of any sales or use tax imposed by the state upon a 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 state sales and use tax law by any city and county, city, or county in this state;

3. In addition to the exemptions provided in Sections 6366 (Aircraft; component parts; presumptions relating to common carrier status) and 6366.1 (Aircraft for leasing to carriers in interstate or foreign commerce or to foreign governments) of the Revenue and Taxation Code, 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.

In the event that the Legislature of the State of California adopts an act which amends or repeals and reenacts Section 7202 (Sales tax on tangible personal property at retail; imposition; included provisions) of the Revenue and Taxation Code 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 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983, on the operative date of such act Section 3.28.040 of the San Bruno City Code shall be amended to read as it read immediately prior to the adoption of Ordinance No. 1425.

(Prior code § 22-3.4; Ord. 1357 § 1, 1980; Ord. 1425 § 1, 1983; Ord. 1875 § 3, 2019)

Except as otherwise provided in this chapter and except insofar as they may be inconsistent with state sales and use tax law:

A. All of the provisions of Part 1, Division 2 of the Revenue and Taxation Code, as amended and in force and effect on January 1, 1961, applicable to sales and use taxes are adopted and made a part of this chapter as though fully set forth herein:

B. All amendments of the Revenue and Taxation Code of the state enacted subsequent to the effective date of the ordinance codified in this chapter which relate to sales and use taxes and which are not inconsistent with state sales and use tax law shall automatically become a part of this chapter.

(Prior code § 22-3.5; Ord. 1357 § 1, 1980; Ord. 1875 § 3, 2019)

For the purpose 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 agent to any out of state destination. 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 pursuant to Ordinance No. 1425, adopted December 12, 1983.

(Prior code § 22-3.6; Ord. 1357 § 1, 1980; Ord. 1425 § 1, 1983; Ord. 1875 § 3, 2019)

If a seller's permit has been issued to a retailer under Section 6067 (Issuance; non-assignability; display) of the Revenue and Taxation Code, an additional seller's permit shall not be required by reason of this chapter.

(Prior code § 22-3.7; Ord. 1357 § 1, 1980; Ord. 1875 § 3, 2019)

A. Whenever, and to the extent that, in Part 1, Division 2 of the Revenue and Taxation Code, the state is named as the taxing agency, the city shall be substituted therefor.

B. Nothing in this section shall be deemed to require the substitution of the name of the city for the word "state" in the following instances:

1. When the word "state" is used as part of the title of the state controller, treasurer, board of control, board of equalization, treasury, or Constitution;

2. In any section when the result of the 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 chapter;

3. In those sections which refer to the exterior boundaries of the state where the result of the substitution would be to provide an exemption from the sales or use tax with respect to certain gross receipts storage, use, or other consumption of tangible personal property which would not otherwise be exempt from such taxes while those gross receipts or such storage, use or other consumption remains subject to tax by the state under the provisions of Part 1, Division 2, of the Revenue and Taxation Code;

4. In the phrase "retailer engaged in business in this state" in Section 6203 (Collection by retailer from purchaser) of the Revenue and Taxation Code or the definition of such phrase in that section;

5. In Sections 6701(Authority to require; amount; increase or decrease; notice and sale; auction; surplus), 6702 (Notice to withhold; service time; withholding payments or transfer to taxpayers) (except in the last sentence thereof), 6711 (Authority to sue; statute of limitations), 6715 (Use tax actions; service of process), 6797 (Notice of sale), and 6828 (Board's authority to act for people) of such Revenue and Taxation Code, as adopted.

C. Nothing in this section shall be construed to impose a sales or use tax with respect to certain gross receipts or certain storage, use, or consumption which would not be subjected to tax by the state under the foregoing provisions of the Revenue and Taxation Code.

(Prior code § 22-3.8; Ord. 1357 § 1, 1980; Ord. 1875 § 3, 2019)

All money collected under and pursuant to the provisions of this chapter shall be deposited and paid into the general fund of the city. Forty-five percent of the net receipts from sales and use taxes shall be used to reduce the payment of city obligations that would normally be paid out of funds derived from real and personal property taxes and the remaining fifty-five percent shall be added to the unbudgeted reserve of the city.

(Prior code § 22-3.9; Ord. 1357 § 1, 1980; Ord. 1875 § 3, 2019)

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 thereof, to prevent or enjoin the collection under this chapter or under state sales and use tax law of any tax or amount of tax to be collected.

(Prior code § 22-3.10; Ord. 1357 § 1, 1980; Ord. 1875 § 3, 2019)