Division 2.5 — TRANSACTIONS AND USE TAX FOR COUNTYWIDE LIBRARY PROGRAMS AND

OPERATIONS 3-2500 - APPLICABILITY.

This chapter shall be applicable in the incorporated and unincorporated territory of the County of San Joaquin, which shall be referred to herein as "District."

(Ord. 3869 § 2 (part), 1996)

3-2501 - OPERATIVE DATE.

The operative date of the ordinance codified in this chapter shall be the first day of the first calendar quarter commencing more than one hundred ten (110) days after the adoption of the ordinance codified in this chapter, the date of such adoption being as set forth in Section 3-2502.

(Ord. 3869 § 2 (part), 1996)

3-2502 - PURPOSE.

The ordinance codified in this chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

(a)

To impose a retail transactions and use tax for countywide library programs and operations in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7286.55 of Part 1.7 of Division 2 which authorizes the District to adopt this tax ordinance which shall be operative if two-thirds of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose;

(b)

The ordinance codified in this chapter is to be submitted to the voters of San Joaquin County on June 4, 1996, the Board having called for an election on that date;

(c)

If two-thirds of the electors voting at said election approve the imposition of the tax, then the operative date of the imposition of this tax shall be on October 1, 1996;

(d)

To adopt a retail transactions and use tax ordinance which 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;

(e)

To adopt a retail transactions 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;

(f)

To adopt a retail transactions and use tax ordinance which can be administered in a manner which 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.

(Ord. 3869 § 2 (part), 1996)

3-2503 - CONTRACT WITH STATE.

Prior to the operative date, the District shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the District shall not have contracted with the State Board of Equalization 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. 3869 § 2 (part), 1996)

3-2504 - TRANSACTIONS TAX RATE.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated and unincorporated territory of the District at the rate of one-eighth of one percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of the ordinance codified in this chapter.

(Ord. 3869 § 2 (part), 1996)

3-2505 - PLACE OF SALE.

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.

(Ord. 3869 § 2 (part), 1996)

3-2506 - USE TAX RATE.

An excise tax is imposed on the storage, use or other consumption in the District of tangible personal property purchased from any retailer on and after the operative date of the ordinance codified in this chapter for storage, use or other consumption in said territory at the rate of one-eighth 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. 3869 § 2 (part), 1996)

3-2507 - ADOPTION OF PROVISIONS OF STATE LAW.

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 adopted and made a part of this chapter as though fully set forth herein.

(Ord. 3869 § 2 (part), 1996)

3-2508 - LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES.

In adopting the provisions of Part 1 of 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 District 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, State Board of Control, 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 District or any agency, officer, or employee 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, 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 said provision of that code;

(4)

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

(b)

The word "District" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203.

(Ord. 3869 § 2 (part), 1996)

3-2509 - PERMIT NOT REQUIRED.

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 chapter.

(Ord. 3869 § 2 (part), 1996)

3-2510 - EXEMPTIONS AND EXCLUSIONS.

(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 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 the State, the United States, or any foreign government;

(2)

Sales of property to be used outside the District which is shipped to a point outside the District, 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 of shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the District 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) of the Vehicle Code by registration to an out-of-District address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his principal place of residence, and

(B)

With respect to commercial vehicles, by registration to a place of business out-of-District 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 the ordinance codified in 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 the ordinance codified in this chapter;

(5)

For the purposes of subdivisions (3) and (4) of this subsection, 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 District 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 purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of the ordinance codified in 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 an amount fixed by a lease prior to the operative date of the ordinance codified in this chapter;

(5)

For the purposes of subdivisions (3) and (4) of this subsection, 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 subdivision (7) of this subsection, a retailer engaged in business in the District 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 District or participates within the District 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 District or through any representative, agent, canvasser, solicitor, subsidiary, or person in the District under the authority of the retailer;

(7)

"A retailer engaged in business in the District" 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 District.

(d)

Any person subject to use tax under this chapter may credit against that tax any transactions or reimbursement for transactions tax paid to a district imposing, or retailer liable for a 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. 3869 § 2 (part), 1996)

3-2511 - AMENDMENTS.

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 inconsistent

with Part 1.6 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 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. 3869 § 2 (part), 1996)

3-2512 - ENJOINING COLLECTION FORBIDDEN.

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 District, or against any officer of the State or the District, 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. 3869 § 2 (part), 1996)

3-2513 - USE OF THE TAXES.

Any and all transactions and use taxes shall be used exclusively for countywide library programs and operations.

For the 1996-97 fiscal year, the City of Lodi shall receive thirteen percent (13%) of the total amount of transactions and use tax collected countywide, to be used exclusively for library programs and operations. For succeeding fiscal years, the percentage of the total transactions and use taxes collected countywide which shall be allocated to the City of Lodi shall be the percentage of sales tax generated in the incorporated area of the City of Lodi for the prior fiscal year, as set out in the most current edition of the State Board of Equalization published document entitled "Taxable Sales in California: Sales and Use Tax Annual Report." The balance of the total amount collected each fiscal year shall be allocated to the Stockton-San Joaquin County Public Library System for use for library facilities and services within all areas of the County of San Joaquin, except for the incorporated area of the City of Lodi.

If the city of Lathrop provides a facility suitable for a library facility, then a portion of the amount allocated each fiscal year to the Stockton-San Joaquin County Library System will be used to provide library services for the City of Lathrop. The Director of the Stockton-San Joaquin County Public Library System shall make the determination as to the amount of the Stockton-San Joaquin County Library System funds which shall be used for the Lathrop library.

(Ord. 3869 § 2 (part), 1996)

3-2514 - ELECTION COSTS AND MAINTENANCE OF EFFORT.

Payment for the costs of the election, if the ballot measure to establish the transactions and use tax is approved by the voters, shall be the responsibility of the Stockton-San Joaquin County Public Library System and the Lodi City Library System, in proportion to the registered voters within the geographical areas of responsibility of each system.

The County shall continue its effort to maintain the library system after the passage of the ordinance codified in this chapter such that the transactions and use tax be used to supplement existing property tax revenue for library service, and such revenue will be maintained at the 1995-96 fiscal year level, except that the

option of reducing the funding level shall be retained in the event that the state budget action reduces existing property tax revenue for library service below the 1995-96 level.

(Ord. 3869 § 2 (part), 1996)

3-2515 - DURATION OF ORDINANCE.

The ordinance codified in this chapter shall terminate ten (10) years after the effective date of the enabling election.

(Ord. 3869 § 2 (part), 1996)