San Rafael Municipal Code Ch. 3.16 Sales Tax

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers at the rate of one percent (1%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City of San Rafael on or after July 1, 1956. The tax imposed by this chapter is in addition to any and all other taxes imposed by any other ordinance of the City of San Rafael.

(Ord. 637).

The tax hereby levied, except as otherwise herein provided, is levied in the same manner, to the same extent and under the same conditions as sales taxes are levied pursuant to Part 1 of Division 2 of the California Revenue and Taxation Code, known as the "Sales and Use Tax Law," as amended and in force and effect on July 1, 1956.

(Ord. 637).

(a) All of the provisions of the "Sales and Use Tax Law," as amended and in force and effect on July 1, 1956, except the provisions thereof pertaining solely to the "Use Tax" and Sections 6051, 6052, 6053, 6066, 6067, 6068, 6069, 6070, 6071, 6451, 7052, 7056, 7101, 7102, 7151, 7152, 7153, applicable to sales of property at retail, are hereby adopted and made a part of this chapter as though fully set forth herein, and all provisions of any other ordinance in conflict therewith are inapplicable to this chapter and the tax hereby imposed.

(b) The term "gross receipts," as used herein, does not include the amount of any tax imposed by the State of California upon or with respect to retail sales whether imposed upon the retailer or upon the consumer.

(c) The term "sale" shall mean and include, in addition to the meanings contained in paragraph (a) of this section, the withdrawal by a retailer in this city of tangible personal property from a place in this city, from a place in California outside this city under the control of the retailer, or from a place in California outside this city at the order of the retailer, for delivery in any manner at a point in California outside this city under such circumstances that the transaction of which the withdrawal is a part would have been considered a sale within the meaning of paragraph (a) of this section had the point of delivery been within this city. Provided, however, that withdrawals pursuant to a transaction in foreign or interstate commerce shall not be sales for the purpose of this section. Charges made for the delivery of tangible personal property so withdrawn shall be included in the gross receipts by which the tax imposed under this section is measured unless such charges are separately stated and are imposed for transportation which occurs after the sale of the property to the purchaser.

(d) All of the provisions of the "Sales and Use Tax Law" hereby adopted, providing for the adoption of rules and regulations and for hearings on the part of the State Board of Equalization, shall be performed by the City Council of the City of San Rafael. All other provisions of the "Sales and Use Tax Law" hereby adopted providing for the performance of official action on the part of the State Board of Equalization, shall be performed by the City Tax Collector of the City of San Rafael.

(e) The City of San Rafael shall be deemed substituted for the State of California whenever the State is referred to in said "Sales and Use Tax Law."

(f) The City Attorney of San Rafael shall be deemed substituted for the Attorney General whenever the Attorney General is referred to in said "Sales and Use Tax Law."

(g) The City Clerk of the City of San Rafael shall be deemed substituted for the State Controller whenever the State Controller or State Board of Control are referred to in said "Sales and Use Tax Law."

(h) The County of Marin shall be deemed substituted for the County of Sacramento whenever the County of Sacramento is referred to in said "Sales and Use Tax Law."

(Ord. 637.)

In addition to the exemptions contained in Part I of Division 2 of the Revenue and Taxation Code of the State of California, after July 1, 1956, there shall be excluded from the computation of the tax, gross receipts from:

(a) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(b) Receipts from the sale of tangible personal property upon which a sales or use tax has become due by reason of the same transaction to any other city and county, county other than Marin County, or city in this state under a sales or use tax ordinance enacted by that city and county, county other than Marin County, or city in this state, whether in accordance with, or purporting to be in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code of the State of California, or in accordance with the organic law of any such city.

(c) Receipts from sales to operators of common carrier and waterborne vessels of property to be used or consumed in the operation of such common carriers or waterborne vessels principally outside of this city.

(d) Sales made pursuant to contracts actually executed in good faith prior to the effective date of Ordinance 637.

(Ord. 637).

The rules and regulations of the State Board of Equalization as amended and in force and effect July 1, 1956, pertaining to the interpretation, administration and enforcement of the "Sales and Use Tax Law," insofar as applicable, except Rule No. 55 (Section 2015, Title 18, California Administrative Code, Sales & Use Tax) shall apply in the interpretation of this chapter until specifically abandoned by the rules and regulations adopted by the City Council of San Rafael pursuant to this chapter. The word "City" shall be deemed substituted for the word "State" whenever the word "State" appears in said rules and regulations.

In lieu of Rule No. 55, specifically excepted above, the following interpretations shall apply in the administration of this chapter:

(a) The sales tax does not apply to sales of property which is:

(1) Imported into this city from a foreign country and sold by the importer in the original package in which imported.

(2) Sold to foreign purchasers for shipment abroad and delivered to a ship, airplane, or other conveyance furnished by the purchaser for the purpose of carrying the property abroad and actually carried to a foreign destination, title and control of the property passing to the foreign purchaser upon delivery, and no portion of the property being used or consumed in the United States. Copies of U.S. Customs Shippers' export declarations filed with the Collector of Customs must be obtained and retained by retailers to support deductions taken under this paragraph. The tax applies to the transaction if the property is diverted in transit or for any reason not actually delivered outside the city pursuant to the contract of sale or not shipped abroad by a foreign purchaser, regardless of documentary evidence held by the retailer of delivery of the property to a carrier for shipment outside the city, or to a foreign purchaser for shipment abroad.

(3) Mailed by the seller, pursuant to the contract of sale, to persons in the armed forces at points outside continental United States, notwithstanding the property is addressed in care of the Postmaster and forwarded by him to the addressee. When mail is addressed to Army Post Offices (APO's) in care of the Postmaster or to naval forces addressed in care of the Postmaster, it will be presumed that it is forwarded outside California. The seller must keep records showing the names and addresses as they appear on the mailed matter and should keep evidence that the mailing was done by him.

(4) Shipped to a point outside this city pursuant to the contract of sale when the property is marked for export and delivered by the retailer to the "contracting officer," "officer in charge," "Port quartermaster," or other officer of the United States for transportation and delivery to the purchaser at such a point.

(b) The sales tax does not apply to sales of airplanes, and parts and equipment for airplanes, transported to a point outside this city pursuant to the contract of sale when such property is delivered to the United States Army Corps or any other agency or instrumentality of the United States for transportation and delivery to the purchaser or someone designated by him at that point.

(c) The sales tax does not apply (either in interstate or intrastate commerce) to sales of property shipped from a point outside the City of San Rafael to a purchaser inside the City of San Rafael, or to the retailer's agent in the City of San Rafael, for delivery to the purchaser, if none of the elements of sale, other than such delivery, takes place in the City of San Rafael.

(d) The sales tax does apply (either in interstate or intrastate commerce) to sales of property shipped from a point outside of the City of San Rafael to a purchaser inside the City of San Rafael, or to the retailer's agent in the City of San Rafael, for delivery to the purchaser where any element of the sale, in addition to such delivery, takes place in the City of San Rafael.

(e) "Element of sale" is hereby defined to include solicitation of an order, the acceptance of an order, the giving of an order, whether such order is given in person, by telephone or by mail, or the payment of the purchase price.

(Ord. 637).

The inclusion of any clause, portion or part of the "State Sales and Use Tax Law," Part I, Division 2, of the Revenue and Taxation Code of the State of California, or the rules and regulations of the State Board of Equalization, verbatim in this chapter shall not in or of itself be deemed to exclude any of the remaining provisions of said "Sales and Use Tax Law" or rules and regulations that are made a part thereof by reference only.

(Ord. 637).

Every person desiring to engage in or conduct business as a seller within the City of San Rafael shall file with the City Tax Collector an application for a permit for each place of business from which taxable sales will be made. Every application for a permit shall be made upon a form prescribed by the City Tax Collector and shall set forth the name under which the applicant transacts or intends to transact business, the location of his place or places of business, and such other information as the City Tax Collector may require. The application shall be signed by the owner, if a natural person; in the case of a corporation, by an executive officer or some person specifically authorized by the corporation to sign the application, to which shall be attached the written evidence of his authority.

(Ord. 637).

After compliance with Section 3.16.070 by the applicant, the City Tax Collector shall grant and issue to each applicant a separate permit for each place of business from which taxable sales will be made. A permit is not assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated therein; provided, however, a change of location may be endorsed upon the permit by the City Tax Collector. The permit shall at all times be conspicuously displayed at the place for which issued.

(Ord. 637).

At the time of making an application for a permit, and at the time a change of location is endorsed upon a permit, the applicant for a permit or for an endorsement of a change of location on a permit shall pay to the City Tax Collector a fee of One Dollar ($1.00).

(Ord. 637).

Whenever any person fails to comply with any of the provisions of this chapter or any rule or regulation adopted pursuant hereto, the City Tax Collector of the City of San Rafael, upon hearing, after giving the person ten days' notice in writing specifying the time and place of hearing and requiring him to show cause why his permit or permits should not be revoked, may revoke or suspend any one or more of the permits held by the person. The notice may be served personally or by mail in the manner prescribed for the service of notice of a deficiency determination under the "Sales and Use Tax Law." The City Tax Collector shall not issue a new permit after the revocation of a permit unless he is satisfied that the former holder of a permit will comply with the provisions of this chapter and the rules and regulations adopted pursuant hereto.

(Ord. 637).

A seller whose permit has been previously suspended or revoked shall pay the City Tax Collector a fee of $1.00 for the renewal or issuance of a permit.

(Ord. 637).

A person who engages in business as a seller in the City of San Rafael without a permit or permits, or after a permit has been suspended or revoked and before the renewal or issuance of a permit, and each officer of any corporation which so engages in business, is guilty of a misdemeanor.

(Ord. 637).

The taxes imposed by this chapter are due and payable to the City Tax Collector on or before the last day of the month next succeeding each quarterly period, the first quarterly payment to be due and payable under this article on the 31st day of October, 1956. The City Tax Collector may require returns and payment of the amount of taxes for quarterly periods other than calendar quarters depending upon the principal place of or the nature of the business of the seller or retailer or may require returns and payment of the amount of taxes for other than quarterly periods.

(Ord. 637).

The tax hereby imposed shall be collected by the retailer from the consumer insofar as it can be done.

(Ord. 637).

It is unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold or that, if added, it or any part thereof will be refunded. Any person violating any provision of this section is guilty of a misdemeanor.

(Ord. 637).

All taxes hereby levied shall be payable to the City Tax Collector, and any civil suit for the collection thereof may be filed in any court of competent jurisdiction in the State of California, and the City Attorney of said city shall prosecute the action.

(Ord. 637).

The City Tax Collector may, at his option, accept a State of California Resale Certificate as evidence that any sale is not a sale at retail, or he may in his discretion require an affidavit from the seller setting forth such information respecting such sale as he deems necessary to determine the nature of such sale.

(Ord. 637).

The City Tax Collector shall have power, for good cause shown, to extend for a period of not to exceed 30 days the time for making any return or paying any amount required to be paid under this chapter, when requested so to do in writing, before the same becomes delinquent. The City Tax Collector may, with the written approval of the City Attorney, waive or compromise any penalty or interest that would otherwise accrue under the provisions of this chapter. The City Tax Collector shall make and transmit to the City Council quarterly a detailed report of any sums so waived or compromised with the reasons therefor.

(Ord. 637).

All monies collected under and pursuant to the provisions of this chapter shall be deposited and paid into the General Fund of the City of San Rafael.

(Ord. 637).

It is unlawful for any officer or employee of the City of San Rafael having an administrative duty under this chapter to make known in any manner whatever the business affairs, operations, or information obtained by an investigation of records and equipment of any retailer or any other person visited or examined in the discharge of official duty or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth or disclosed in any return, or to permit any return or copy thereof or any book containing any abstract or particulars thereof to be seen or examined by any person. However, the City Council may, by resolution, authorize examination of the returns by federal or state officers or employees or by the tax officers of this or any other city if a reciprocal arrangement exists. Successors, receivers, trustees, executors, administrators, assignees, and guarantors, if directly interested, may be given information as to the items included in the measure and amounts of any unpaid tax or amounts of tax required to be collected, interest and penalties.

(Ord. 637).

This chapter shall go into effect and be in force on and after July 1, 1956.

(Ord. 637).

Charter Ordinance No. 410, as amended, being an ordinance imposing a sales tax for the privilege of selling tangible personal property at retail in the City of San Rafael and establishing provisions relative thereto is hereby repealed; provided, however, that nothing in this article shall be construed as relieving any person of the obligation to pay to the City of San Rafael any sales tax accrued and owing by reason of the provisions of Charter Ordinance No. 410 in force and effect prior to and including June 30, 1956, but as to all such persons and taxes said Charter Ordinance No. 410 shall continue to apply, notwithstanding its repeal by this chapter; provided, further, that neither this chapter nor the repeal of said Charter Ordinance No. 410 is intended to bar any criminal action for violation of said Charter Ordinance No. 410 or any civil action to enforce the provisions thereof and this chapter shall never be so construed, and all such criminal prosecutions and civil actions are intended to be and are hereby declared saved and preserved, and as to all such actions and proceedings said Charter Ordinance No. 410 shall continue to apply, notwithstanding its repeal.

(Ord. 637).