Chapter 3.36 — GENERAL PURPOSE TRANSACTIONS AND USE TAX

This chapter shall be known as the City of Sand City General Purpose Transactions and Use Tax Ordinance. The City of Sand City hereinafter shall be called "City." This chapter shall be applicable in the incorporated territory of the City. (Ord. 22-03 §2)

"Operative date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of the ordinance codified in this chapter, the date of such adoption being November 8, 2022. (Ord. 22-03 §2)

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 in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

B. To adopt a retail transactions and use tax ordinance that 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.

C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the California Department of Tax and Fee Administration 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 California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.

D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that 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. 22-03 §2)

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 ordinance; 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. 22-03 §2)

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 the rate of one and one-half percent (1.5%) 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. 22-03 §2)

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 California Department of Tax and Fee Administration. (Ord. 22-03 §2)

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 and after the operative date of this chapter for storage, use or other consumption in said territory at the rate of one and one-half percent (1.5%) 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. 22-03 §2)

Except as otherwise provided in this ordinance 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 hereby adopted and made a part of this chapter as though fully set forth herein. (Ord. 22-03 §2)

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 City 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 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 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 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 "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 of that phrase in Section 6203.

1. "A retailer engaged in business in the District" shall also include any retailer that, in
the preceding calendar year or the current calendar year, has total combined sales of
tangible personal property in this state or for delivery in the state by the retailer and
all persons related to the retailer that exceeds $500,000. For purposes of this section,
a person is related to another person if both persons are related to each other pursuant
to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.

(Ord. 22-03 §2)

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. 22-03 §2)

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 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 or
her 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 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 Division 3.5
(commencing with Section 9840) of the Vehicle Code 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 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 paragraphs 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 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 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 paragraphs 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 paragraph 7 of this subsection, 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 Chapter 1 (commencing
with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance
with Section21411 of the Public Utilities Code, or undocumented vessels registered
under 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 City.

D. Any person subject to use tax under this chapter 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 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. 22-03 §2)

All amendments subsequent to the effective date of 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 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 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. 22-03 §2)

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 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. 22-03 §2)

If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the remainder of the chapter and the application of such provision to other persons or circumstances shall not be affected thereby. (Ord. 22-03 §2)

This chapter relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately if the tax is imposed by a simple majority of the voters voting on the question at the November 8, 2022 election. (Ord. 04-04 §2; Ord. 17-04 §6; Ord. 22-03 §2)

Annually the City Council retains an independent auditor to conduct an audit of and provide audited financial statements for all of the City's financial activities. The auditor shall include an accounting of the revenue received from the tax in the audited financial statements. The auditor's report shall be presented to the Council and made available to the public. (Ord. 22-03 §2)

• Title 5
• BUSINESS TAXES, LICENSES AND REGULATIONS
• Chapter 5.04 BUSINESS LICENSE TAX
• § 5.04.010. Definitions.
• § 5.04.020. Revenue Measure.
• § 5.04.030. Substitute for Other Revenue Ordinances.
• § 5.04.040. Effect of Ordinance on Past Actions and Obligations Previously Accrued.
• § 5.04.050. License Required.
• § 5.04.060. Separate Licenses for Branch Establishments.
• § 5.04.070. Enforcement.
• § 5.04.080. Tax Amount Deemed Debt to City.
• § 5.04.090. Official Acts Performed by City Clerk.
• § 5.04.100. License Issuance—Copy to Clerk.
• § 5.04.110. Police Clearance and Investigative Report—Fee.
• § 5.04.120. Certain Applicants Required to Obtain Clearance.
• § 5.04.130. Exemptions.
• § 5.04.140. Application.
• § 5.04.150. Affidavit for First License.
• § 5.04.160. Renewal License—Statement.
• § 5.04.170. Renewal Statement Not Conclusive.
• § 5.04.180. Failure to File Renewal Statement.
• § 5.04.190. Appeals.
• § 5.04.200. Extension of Time.
• § 5.04.210. Transfers.
• § 5.04.220. Unexpired Licenses.
• § 5.04.230. Duplicate Licenses.
• § 5.04.240. Posting and Keeping Licenses.
• § 5.04.250. License Tax—How and When Payable.
• § 5.04.260. License Tax—Flat Amount.
• § 5.04.270. Contractor's Offices and/or Storage.
• § 5.04.280. Public Utilities.
• § 5.04.290. Real Property Rental.
• § 5.04.300. Storage—Closed.
• § 5.04.310. Storage—Open.
• § 5.04.320. Vehicle License Tax.
• § 5.04.330. Vending Machines—Fees.
• § 5.04.340. Vending Machines—Liability for License.
• § 5.04.350. Impounding Unlicensed Vending Machines.
• § 5.04.360. Other Businesses—Rate of Taxes.
• § 5.04.370. Civil Penalties for Failure to Pay License Tax When Due.
• § 5.04.390. Amendment of Business Tax Rates.
• Chapter 5.08
• BINGO
• § 5.08.010. Generally.
• § 5.08.020. Defined.
• § 5.08.030. Who Shall Benefit.
• § 5.08.040. Personal Profit Disallowed.
• § 5.08.050. Minors.
• § 5.08.060. Where Games Held.
• § 5.08.070. Open to Public.
• § 5.08.080. Operation and Staff.
• § 5.08.090. Outside Financial Interest Prohibited.
• § 5.08.100. Profits to Be Held in Special Fund.
• § 5.08.110. Physical Presence Required for Participation.

• Chapter 5.10 GARAGE, YARD, ESTATE AND
• RUMMAGE SALES

• Chapter 5.16 MASSAGE BUSINESSES AND
• TECHNICIANS
• § 5.16.010. Title.
• § 5.16.020. Purpose and Intent.
• § 5.16.030. Definitions.
• § 5.16.040. Massage Establishment—License—Required.
• § 5.16.050. Massage Establishment—License—Application—Fee.
• § 5.16.060. Off-Premises Massage Business—License—Required.
• § 5.16.070. Off-Premises Massage Business—License—Application—Fee.
• § 5.16.080. Massage Technician—Permit—Required.
• § 5.16.090. Massage Technician—Permit—Application—Fee.
• § 5.16.100. Exemptions.
• § 5.16.110. Massage Establishments—Operating Requirements.
• § 5.16.120. Operative Date—Massage Technicians.
• § 5.16.130. Operative Date—Massage Establishments—Off- Premises Massage Business.
• § 5.16.140. Name of Business.
• § 5.16.150. Change of Location.
• § 5.16.160. Sale or Transfer.
• § 5.16.170. Inspections.
• § 5.16.180. Suspension or Revocation of License or Permit.
• § 5.16.190. Hearing.
• § 5.16.200. Stay of Suspension or Revocation.
• § 5.16.210. Appeal.
• Chapter 5.18 TAXICABS
• § 5.18.010. General Provision.
• § 5.18.020. Definitions.
• § 5.18.030. Determination of Number of Taxicab Businesses in the City.
• § 5.18.040. Continued Operation of Authorized Business Required.
• § 5.18.050. Compliance With State and Local Laws and Regulations.
• § 5.18.060. Insurance Requirements and Hold Harmless.
• § 5.18.070. Rates and Fares—Generally.
• § 5.18.080. Condition of Vehicles—Generally.

• § 5.18.100. "For Hire" Lights Required.

• § 5.18.180. Keeping of Tripsheets Required.
• § 5.18.190. Keeping of Records by Owners Required.
• § 5.18.200. Reports of Found Property.
• § 5.18.210. Service to General Public.
• § 5.18.220. Owner's Permit Required.
• § 5.18.230. Taxicab Driver's Permit Required.
• § 5.18.240. Mandatory Controlled Substance and Alcohol Testing Program.
• § 5.18.250. Taximeters.

• Chapter 5.20 STANDARDS, PROCEDURES, AND FEES FOR SHORT TERM RENTALS
• § 5.20.010. Purpose and Intent.
• § 5.20.020. Prohibition of Transient Use.
• § 5.20.030. Definitions.
• § 5.20.040. Short-Term Rental Regulations.
• § 5.20.050. Short-Term Rental Permit Application Requirements.
• § 5.20.060. Short-Term Rental Permit Selection Process.
• § 5.20.070. Expiration and Renewal of Short-Term Rental Permits.
• § 5.20.080. Revocation of Short-Term Rental Permit.
• § 5.20.090. Enforcement.
• § 5.20.100. Hearing and Appeal of Denial or Revocation.
• § 5.20.110. No Property Rights Conferred.
• § 5.20.120. Fees.
• § 5.20.130. Administration.