Santa Paula Municipal Code Ch. 37 Taxation

Section

Transfer of Tax Functions

Local Transactions and Use Tax

Real Property Transfer Tax

Uniform Transient Occupancy Tax

Cannabis Business Tax

Supplemental General Transactions and Use Tax

Cross-reference:

Business license taxes, see Ch. 110

TRANSFER OF TAX FUNCTIONS

The assessment and tax collection duties, and the collection of assessment levied for municipal improvements, now performed by the Assessor and the Tax Collector of the city, are transferred to the Assessor and the Tax Collector of the county for the purpose of assessment and collection of and for ad valorem property taxes that become a lien after the adoption of this subchapter, and the collection of assessments for municipal improvements becoming due and payable on and after July 1, 1962.

('81 Code, § 3.04.010)

Statutory reference:

Transfer of tax function to county, see Cal. Gov't Code §§ 51500 et seq.

All taxes of the city that shall have been levied prior to September 1, 1961, including delinquent taxes, shall be collected and the payment thereof enforced in the same manner and upon the same penalties, and property sold for the nonpayment thereof and redeemed from such sale in the same manner and under the same conditions as provided by the laws in force in the city on September 1, 1961, and the officers of the city shall collect and enforce the payment of such taxes, including delinquent taxes, and do any and all things that may become necessary in the sale of property for nonpayment of such taxes and in the redemption thereof from such sale.

('81 Code, § 3.04.020)

All duties performed by the City Assessor, other than the assessing of the city property, are transferred to, and shall be performed by the Director of Finance.

('81 Code, § 3.04.030) (Ord. 871, passed - -86)

All duties performed by the City Tax Collector, other than the collection of taxes, are transferred to, and shall be performed by the License Collector.

('81 Code, § 3.04.040) (Ord. 871, passed - -86)

The amount of compensation to be charged by and paid to the county for the performance of services contemplated in this subchapter shall be fixed by agreement between the Board of Supervisors of the county and the Council; provided, however, that such compensation shall in no event exceed one percent for collecting the first $25,000, and not more than one-fourth of one percent for all sums over that amount collected for the city as provided in this subchapter.

('81 Code, § 3.04.050)

LOCAL TRANSACTIONS AND USE TAX

This subchapter is entitled the "Santa Paula Local Transactions and Use Tax Ordinance." The term "city," as used within this subchapter, is the city of Santa Paula. This subchapter is applicable in the incorporated territory of the city.

(‘81 Code, § 3.08.010) (Am. Ord. 1267, passed 12-2-16)

Statutory reference:

Sales and use tax, see Cal. Gov’t Code § 37101 and Cal. Rev. & Tax. Code §§ 7200 et seq.

OPERATIVE DATE means the first day of the first calendar quarter commencing more than 110 days after the adoption of this subchapter. The Santa Paula Local Transactions and Use Tax will expire 20 years after the operative date.

(‘81 Code, § 3.08.020) (Am. Ord. 1267, passed 12-2-16)

This subchapter is adopted to achieve the following, among other purposes, and directs that its provisions 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 § 7251) of Division 2 of the Cal. Rev. & Tax. Code and § 7285.9 of Part 1.7 of Division 2 which authorizes the city to adopt this subchapter which becomes operative if more than 50% of the electors voting on the ballot measure vote to approve the imposition of the tax at an election called for that purpose.

(B) To adopt retail transactions and use tax regulations 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 Cal. Rev. & Tax. Code.

(C) To adopt retail transactions and use tax regulations that imposes a tax and provides a measure therefore 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 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 Cal. Rev. & Tax. 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 subchapter.

(‘81 Code, § 3.08.040) (Am. Ord. 1267, passed 12-2-16)

Before the operative date, the city must contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax chapter; provided, that if the city cannot have contracted with the State Board of Equalization before the operative date, it must nevertheless so contract and in such a case the operative date is the first day of the first calendar quarter following the execution of such a contract.

(‘81 Code, § 3.08.050) (Am. Ord. 1267, passed 12-2-16)

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 1% 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 this subchapter.

(‘81 Code, § 3.08.060) (Am. Ord. 1267, passed 12-2-16)

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 or her 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 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 is determined under rules and regulations to be prescribed and adopted by the State Board of Equalization.

(‘81 Code, § 3.08.070) (Am. Ord. 1267, passed 12-2-16)

An excise tax is 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 subchapter for storage, use or other consumption in said territory at the rate of 1% of the sales price of the property. The sales price includes delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

(‘81 Code, § 3.08.080) (Am. Ord. 1267, passed 12-2-16)

Except as otherwise provided in this subchapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Cal. Rev. & Tax. Code, all of the provisions of Part 1 (commencing with § 6001) of Division 2 of the Cal. Rev. & Tax. Code are adopted and made a part of this subchapter as though fully set forth.

(Am. Ord. 1267, passed 12-2-16)

In adopting the provisions of Part 1 of Division 2 of the Cal. Rev. & Tax. Code:

(A) The city is substituted wherever the State of California is named or referred to as the taxing agency. However, the substitution is not made when:

(1) The word STATE is used as a part of the title of the State Controller, State Treasurer, Victim Compensation and Government Claims Board of Equalization, 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 city 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 subchapter.

(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 Cal. Rev. & Tax. 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 §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Cal. Rev. & Tax. Code.

(B) The word “City” is substituted for the word "State" in the phrase "retailer engaged in business in this State" in § 6203 and in the definition of that phrase in § 6203 of the Cal. Rev. & Tax. Code.

(Am. Ord. 1267, passed 12-2-16)

If a seller’s permit has been issued to a retailer under § 6067 of the Cal. Rev. & Tax. Code, an additional transactor’s permit is not required by this subchapter.

(Ord. 1267, 12-2-16)

(A) There is 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-Bums 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 section, delivery to a point outside the city is satisfied:

(a) With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with § 4000) of Division 3 of the Cal. Vehicle Code, aircraft licensed in compliance with § 21411 of the Cal. Pub. Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with § 9840) of the Cal. 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 before the operative date of this subchapter.

(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 before the operative date of this subchapter.

(5) For the purposes of divisions (3) and (4) of this section, the sale or lease of tangible personal property is 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 subchapter, 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 §§ 6366 and 6366.1 of the Cal. Rev. & Tax. Code.

(3) If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into before the operative date of this subchapter.

(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 before the operative date of this subchapter.

(5) For the purposes of divisions (C)(3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property is 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 division (C)(7), a retailer engaged in business in the city is not 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, without limitation, 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" also includes any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with § 4000) of Division 3 of the Cal. Vehicle Code, aircraft licensed in compliance with § 21411 of the Cal. Pub. Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with § 9840) of the Cal. Vehicle Code. That retailer is 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 subchapter 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 Cal. Rev. & Tax. 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.

(‘81 Code, § 3.08.140) (Ord. 796, passed - -83; Am. Ord. 1267, passed 12-2-16)

All amendments subsequent to the effective date of this Chapter to Part 1 of Division 2 of the Cal. Rev. & Tax. 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 Cal. Rev. & Tax. Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Cal. Rev. & Tax. Code, automatically become a part of this subchapter, provided however, that no such amendment operates so as to affect the rate of tax imposed by this subchapter.

(Ord. 1267, passed 12-2-16)

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 Part 1.6 of Division 2, of any tax or any amount of tax required to be collected.

(‘81 Code, § 3.08.160) (Am. Ord. 1267, passed 12-2-16)

REAL PROPERTY TRANSFER TAX

(A) The ordinance codified in this subchapter shall be known as the “Real Property Transfer Tax Ordinance of the city.”

(B) It is adopted pursuant to the authority contained in Cal. Rev. & Tax. Code §§ 11901 et seq.

('81 Code, § 3.16.010)

Statutory reference:

Real property transfer tax, see Cal. Rev. & Tax. Code §§ 11901 et seq.

(A) There is imposed on each deed, instrument or writing by which any lands, tenements or 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 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.

('81 Code, § 3.16.020)

(B) Any tax imposed pursuant to division (A) of 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.

('81 Code, § 3.16.030)

(A) Instruments to secure debts. Any tax imposed pursuant to this subchapter shall not apply to any instrument in writing given to secure a debt.

('81 Code, § 3.16.040)

(B) Public agencies. The United States or any agency or instrumentality thereof, any state or territory or political subdivision thereof, or the District of Columbia shall not be liable for any tax imposed pursuant to this subchapter with respect to any deed, instrument or writing to which it is a party, but the tax may be collected by assessment from any other party liable therefor.

('81 Code, § 3.16.050)

(C) Plans of reorganization or adjustment.

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

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

(b) Approved in an equity receivership proceeding in a court involving a railroad corpora-tion, as defined in subdivision (m) of § 205 of Title 11 of the United States Code, as amended;

(c) Approved in an equity receivership proceeding in a court involving a corporation, as defined in subdivision (3) of § 506 of Title 11 of the United States Code, as amended; or

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

(2) Subdivisions (a) through (d) of sub-division (1) 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.

('81 Code, § 3.16.060)

(D) Orders of Securities and Exchange Commission. 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 subdivision (a) of § 1083 of the Internal Revenue Code of 1954; but only if:

(1) 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 79k relating to the Public Utility Holding Company Act of 1935;

(2) Such order specifies the property which is ordered to be conveyed;

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

('81 Code, § 3.16.070)

(E) Partnership.

(1) In the case of any realty held by a partnership, no levy shall be imposed pursuant to this subchapter by reason of any transfer of an interest in a partnership or otherwise, if such partnership (or another partnership) is considered a continuing partnership within the meaning of § 708 of the Internal Revenue Code of 1954. For purposes of this subchapter, 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.

(2) Not more than one tax shall be imposed pursuant to this subchapter by reason of a termination described in subdivision (1) of this division, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.

('81 Code, § 3.16.080)

(F) Other exemptions. The exemptions set forth in Cal. Rev. & Tax. Code §§ 11921 through 11929 shall apply.

The County Recorder shall administer this subchapter in conformity with the provisions of Cal. Rev. & Tax. Code §§ 11901 et seq. and the provisions of any county ordinance adopted pursuant thereto.

('81 Code, § 3.16.090)

(A) Subject to the provisions of this section, claims for refund of taxes imposed pursuant to this subchapter shall be governed by the provisions of Cal. Rev. & Tax. Code §§ 5096 et seq.

('81 Code, § 3.16.100)

(B) 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 chapter, it may be refunded as provided in divisions (B), (C) and (D) 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 collector within one year of the date of payment. The claim shall be on forms furnished by the tax collector.

(C) 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 collector 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.

(D) 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), 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.

(E) 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.

(Am. Ord. 1049, passed 4-9-02)

UNIFORM TRANSIENT OCCUPANCY TAX

The ordinance codified in this subchapter shall be known as the “Uniform Transient Occupancy Tax Ordinance of the city.”

('81 Code, § 3.20.010)

Statutory reference:

Transient occupancy tax, see Cal. Rev. & Tax. Code §§ 7280 and 7281

For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

HOTEL. Any commercial establishment or any portion of any commercial establishment which provides for the occupancy of transients for dwelling, lodging or sleeping purposes, whether by the day, week or month and includes any hotel, inn, motel or commercial establishment of similar nature; and shall further include any space, lot, area or site in any trailer court, recreational vehicle park, mobile home park, camp, park or lot where a trailer, tent, recreational vehicle, mobile home, motor home, or other similar habitation is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes.

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, and shall further include any space, lot, area or site in any trailer court, recreational vehicle park, mobile home park, camp, park or lot where a trailer, tent, recreational vehicle, mobile home, motor home or other similar habitation is occupied or intended or designed for occupancy by transients 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. Whether the operator performs his functions through a managing agent or of any type or character other than an employee, the managing agent shall also be deemed an operator for the purpose of this subchapter and shall have the same duties and liabilities as his 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 COLLECTOR. The Tax and License Collector and his deputies and authorized employees of the city.

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 the ordinance codified in this subchapter may be considered.

('81 Code, § 3.20.020) (Ord. 841, passed - -85)

(A) For the privilege of occupancy in any hotel in the incorporated area of the city, each transient is subject to and shall pay a tax in the amount of 10% of the rent charged by the operator.

(B) This tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city.

(C) No tax is due or may be collected pursuant to this section in the following cases:

(1) When the transient exercised occupancy or was entitled to occupancy for 30 days or more;

(2) When the transient is by treaty, or federal law, or state law exempt from payment of transient occupancy taxes. Such transients include, without limitation, a federally chartered credit union; insurance companies pursuant to the California Constitution; and the American Red Cross; or

(3) When hotel rent is directly paid by the United States Government or the State of California or their respective instrumentalities. This exemption does not exempt a transient who is employed by an exempt entity from payment of the tax when the payment is later to be reimbursed by the entity.

(D) The City Manager, or designee, is authorized to create a standard form, in accordance with applicable law, for persons claiming an exemption under this section.

('81 Code, § 3.20.030) (Ord. 794, passed - -83; Am. Ord. 1175, passed 7-16-07)

(A) The transient shall pay the tax to the operator of the hotel at the time the rent is paid.

(B) If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment.

(C) The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel.

(D) If, for any reason, the tax due is not paid to the operator of the hotel, the Tax Collector may require the transient to pay such tax directly to the Tax Collector.

('81 Code, § 3.20.040) (Ord. 984, passed - -94)

(A) 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.

(B) The amount of the tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator.

(C) The operator of a hotel shall not 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 provided in this subchapter.

('81 Code, § 3.20.050)

Every operator liable for the collection and payment to the city of any tax imposed by this subchapter must keep and preserve, for not less than four years, all records of the operator which may be necessary, in the Tax Collector's judgment, to determine the amount of such tax.

('81 Code, § 3.20.060) (Ord. 1175, passed 7-16-07)

(A) Certificate required.

(1) Within 30 days after the effective date of the ordinance codified in this subchapter or within 30 days after commencing business, whichever is later, each operator of any hotel renting occupancy to transients shall register the hotel with the Tax Collector.

(2) Upon such registration the Tax Collector shall issue to such operator a transient occupancy registration certificate.

('81 Code, § 3.20.070)

(B) Posting of certificate. The operator shall post and at all times keep posted in a conspicuous place on the premises of the hotel the transient occupancy registration certificate.

('81 Code, § 3.20.080)

(C) Contents. The transient occupancy registration certificate shall, among other things, state the following:

(1) The name of the operator;

(2) The address of the hotel;

(3) The date upon which the certificate was issued;

(4) The following notice:

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 Collector for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the Tax Collector. 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 applicable laws. This certificate does not constitute a permit.

('81 Code, § 3.20.090)

Each operator shall make a return to the Tax Collector, postmarked on or before the last day of the month following the close of the calendar quarter, or at the close of any other reporting period which may be established by the Tax Collector, on forms provided by him, of the total rents charged and received and the amount of the tax collected for transient occupants.

('81 Code, § 3.20.100) (Ord. 871, passed - -86)

(A) At the time the return is filed, the operator shall remit the full amount of the tax collected to the Tax Collector.

(B) The Tax Collector may establish shorter, longer or other reporting periods for any certificate holder if he deems it necessary or expedient in order to issue collection of the tax.

(C) The Tax Collector may require further information in the return.

(D) Returns and payments are due immediately upon cessation of business for any reason.

('81 Code, § 3.20.110)

Every operator shall hold in trust for the account of the city until payment thereof is made to the Tax Collector all taxes collected by such operator.

('81 Code, § 3.20.120)

(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.

('81 Code, § 3.20.130)

(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.

('81 Code, § 3.20.140)

(C) Fraud. If the Tax Collector determines that the nonpayment 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.

('81 Code, § 3.20.150)

(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 one-half of one percent 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.

('81 Code, § 3.20.160)

(E) Penalties and interest merged with tax. Every penalty imposed and such interest as accrues under the provisions of this subchapter shall become a part of the tax required to be paid in this subchapter.

('81 Code, § 3.20.170)

(A) If any operator fails or refuses to collect the tax and to make, within the time provided in this subchapter, any report and remittance of the tax or any portion thereof required by this subchapter, the Tax Collector shall proceed in such manner as he may deem best to obtain facts and information upon which to base his estimate of the tax due.

(B) As soon as the Tax Collector procures such fact and information, he shall proceed to determine and assess against such operator the tax, interest and penalties provided for in this subchapter.

('81 Code, § 3.20.180)

If the Tax Collector makes a determination pursuant to this subchapter, he shall give notice of the amount so assessed, either by serving such notice personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his last known place of business.

('81 Code, § 3.20.190)

(A) Within 10 days after the serving upon any operator of such notice, such operator may apply in writing to the Tax Collector for a hearing on the amount assessed.

(B) 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 Collector shall become final and conclusive and immediately due and payable.

('81 Code, § 3.20.200)

(A) If such application is made, the Tax Collector shall give not less than five days written notice in the manner prescribed in this subchapter to the operator to show cause at a time and place fixed in the notice why the amount specified therein should not be fixed for such tax, interest and penalties.

(B) At such hearing, the operator may appear and offer evidence why such specified tax, interest and penalties should not be so fixed.

(C) After such hearing, the Tax Collector shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed in this subchapter of such determination and the amount of such tax, interest and penalties.

(D) The amount determined to be due shall be paid within 15 days unless an appeal is taken as provided in this subchapter.

('81 Code, § 3.20.210)

(A) Time for appeal. Any operator deeming himself aggrieved by any decision of the Tax Collector with respect to the amount of the tax, interest and penalties found to be due may appeal to the City Council by filing a notice of appeal with the City Clerk within 15 days of the serving or mailing of the determination of the tax due.

('81 Code, § 3.20.220)

(B) Notice of hearing. Upon the filing of a notice of appeal, the City Clerk shall fix a time and place for hearing such appeal, and he shall give not less than five days notice in writing, either personally or by United States mail, postage prepaid.

('81 Code, § 3.20.230)

(C) Decision of appeal. The City Council shall hear and consider all evidence produced by the appellant and other witnesses, and written findings thereon, which shall be final, shall be served upon the appellant in the manner prescribed in division (B) of this section.

('81 Code, § 3.20.240)

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, the operator may request such amount be credited to subsequent taxes, or the amount may be refunded as provided in this subchapter.

('81 Code, § 3.20.250)

Refund or credit in the amount overpaid, paid more than once or erroneously or illegally collected or received shall be approved by the city only when it is established to the satisfaction of the Tax Collector that the person from whom the tax was collected was not a transient and that the amount of the tax so collected has in fact been refunded to the transient or credited to the account of the transient.

('81 Code, § 3.20.260)

(A) When an operator shows to the satisfaction of the Tax Collector that he no longer is operating a hotel in the incorporated area of the city or will cease such operation before the credit can be applied and files a proper claim therefor, in lieu of such credit, the Tax Collector shall refund to such operator the amount overpaid, paid more than once or erroneously or illegally collected or received.

('81 Code, § 3.20.270)

(B) A transient or other guest of a hotel 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 § 37.81 if the tax was paid by the transient or other guest directly to the Tax Collector or if the transient or other guest has paid the tax to the operator and established to the satisfaction of the Tax Collector that the transient or other guest has been unable to obtain a refund from the operator who collected the tax.

('81 Code, § 3.20.280)

The Tax Collector shall consider all competent evidence in support of any claim for refund.

('81 Code, § 3.20.290)

(A) 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.

(B) 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.

('81 Code, § 3.20.300)

Any person owing money to the city under the provisions of this subchapter shall be subject to an action brought in the name of the city for the recovery of such amount.

('81 Code, § 3.20.310)

Every person is guilty of a misdemeanor who:

(A) Fails or refuses to register as required by this subchapter;

(B) Fails or refuses to furnish any return required to be made, or fails or refuses to furnish a supplemental return or other data required by the Tax Collector;

(C) Renders a false or fraudulent return;

(D) If required by this subchapter to make, render, sign or verify any report or claim, makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due;

(E) Collects the tax due pursuant to this subchapter from any transient and fails to pay the same to the city;

(F) Violates in any way any other provisions of this subchapter.

('81 Code, § 3.20.320) Penalty, see Ch. 13

(A) Pursuant to Cal. Rev. & Tax. Code § 7283.5, and as that section may from time to time be amended, a purchaser, transferee, or other person attempting to obtain ownership of a transient occupancy facility, may submit a written request to the city that the Tax Collector issue a tax clearance certificate stating the amount of tax and any accrued penalties and interest due and owing, if any.

(B) The Tax Collector must, within 90 days after receiving the written request for a tax clearance certificate, issue the tax clearance certificate or may conduct an audit of the subject transient occupancy facility. Any such audit must be completed within 90 days after the date the records of the subject transient occupancy facility were made available to the Tax Collector and a tax clearance certificate issued within 30 days after the audit is complete.

(C) If, following an audit, the Tax Collector determines that the current operator's records are insufficient to assess the amount of tax due and owing, the Tax Collector must, within 30 days after making that determination, notify the prospective purchaser, transferee or other person that a tax clearance certificate cannot be issued.

(D) If the Tax Collector does not comply with the request for a tax clearance certificate, the purchaser, transferee or other person that obtains ownership of the transient occupancy facility is not liable for any transient occupancy tax obligation incurred before the date of the purchase or transfer of the property.

(E) The tax clearance certificate must state the following:

(1) The amount of tax, interest and penalties then due an owing;

(2) The period of time for which the tax clearance certificate is valid; and

(3) That the purchaser, transferee, or other person may rely upon the tax clearance certificate as conclusive evidence of the tax liability associated with the property as of the date specified on the certificate.

(F) Any purchaser, transferee, or other person who does not obtain a tax clearance certificate under this section, or who obtains a tax clearance certificate that indicates that tax is due and owing and fails to withhold, for the benefit of the county, sufficient funds in the escrow account for the purchase of the property to satisfy the transient tax liability, is liable for the amount of tax due and owing.

(Ord. 1175, passed 7-16-07)

CANNABIS BUSINESS TAX

For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

CANNABIS. All parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. CANNABIS also means the separated resin, whether crude or purified, obtained from cannabis. CANNABIS also means the term as defined in Cal. Health and Safety Code § 11018 and is not limited to medical cannabis. CANNABIS does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, CANNABIS does not mean " industrial hemp" as defined by § 11018.5 of the Cal. Health and Safety Code.

CANNABIS BUSINESS. Any business, organization or facility, regardless of form, whether operating for profit or not for profit, that cultivates, processes, stores, tests, packages, labels, distributes, transports, and/or sells, dispenses or delivers cannabis, cannabis products and/or devices for the use of cannabis or cannabis products. CANNABIS BUSINESS does not include personal medical or adult use cannabis cultivation authorized by state law and this code. A cannabis business shall not be considered to be a religious, social or charitable organization exempt from the payment of business taxes under this subchapter.

CANNABIS CULTIVATION. The seeding, planting, watering, warming, cooling, growing, harvesting, drying, curing, grading or trimming of cannabis.

CANNABIS DISTRIBUTION or CANNABIS TRANSPORT. Any activity involving the commercial procurement, sale, transfer and/or transport of cannabis and cannabis products from one cannabis business to another cannabis business for purposes authorized pursuant to state law.

CANNABIS NURSERY. A cannabis business that produces only clones, immature plants, seeds and other agricultural products used specifically for cannabis cultivation.

CANNABIS PROCESSING. Any activity involving the holding, storing, sorting, preparation, labeling and packaging of raw cannabis for retail sale; or involving the production, preparation, propagation, labeling, packaging or compounding of cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis.

CANNABIS PRODUCT. Cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. CANNABIS PRODUCT also means cannabis products as defined by Cal. Health and Safety Code § 11018.1 and is not limited to medical cannabis products.

CANNABIS TESTING. Any activity involving the testing of cannabis or cannabis products by a facility that is both of the following:

(1) Accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the state; and

(2) Registered with the California State Department of Public Health.

ENGAGED IN A CANNABIS BUSINESS. The commencing, conducting, operating, managing or carrying on of a cannabis business and the exercise of corporate, franchise or other business powers, whether done as owner, or by means of an officer, agent, manager, employee, or other representative, within the city, whether operating from a fixed location within the city or coming into the city from an outside location to engage in cannabis business activities. By way of example, a person shall be deemed ENGAGED IN CANNABIS BUSINESS within the city if such person or the person' s officer, agent, manager, employee, or other representative acting on behalf of such person:

(1) Maintains a fixed place of cannabis business within the city;

(2) Owns, leases or otherwise has the legal right to occupy real property within the city for cannabis business purposes;

(3) Regularly maintains a stock of tangible personal property within the city in the ordinary course of cannabis business;

(4) Performs work or renders cannabis business services to other cannabis businesses or to retail cannabis customers located within the city.

GROSS RECEIPTS. Except as otherwise provided in this subchapter, the total amount of monetary consideration actually received or receivable by a cannabis business for performance of any act or service in providing, at wholesale or retail, cannabis and/or cannabis products, for which a charge is made or credit allowed including, but not limited to: membership dues, the value of monetary and in-kind contributions, payments, reimbursement of fees for cultivation, processing, distribution, delivery, retail, storing, exchanging, processing, delivering, making available, or transmitting of cannabis or cannabis products, any payments made, and anything else of value obtained by a cannabis business. Included in GROSS RECEIPTS shall be all receipts, cash, credits, and property of any kind without deduction of the cost of the property sold, the cost of the materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. Gross receipts shall not include the following:

(1) Cash discounts where allowed and taken on sales;

(2) Sales or other applicable state or local tax required by law to be added to the purchase price of cannabis or cannabis products and collected from the purchaser;

(3) Such part of the sales price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts; or

(4) Whenever there are included within gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectable in a subsequent year, those amounts may be excluded from gross receipts in the year they prove to be uncollectable, provided, however, if all or any portion of such amounts excluded as uncollectible are subsequently collected they shall be included in gross receipt for the period when they are recovered.

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, which is conducting itself as a cannabis business.

SPACE UTILIZED IN CONNECTION WITH CANNABIS CULTIVATION/PROCESSING. Any space or ground, floor or other surface area (whether horizontal or vertical) which is used for either or both of the following:

(1) Cannabis nursery and/or cultivation, of any combination of those activities, as well as storing any products, supplies or equipment related to any such activities, no matter where such storage may take place or such storage space may be located.

(2) Cannabis processing, testing, distribution or transport, or any combination of those activities, as well as storing any products, supplies or equipment related to any such activities, no matter where such storage may take place or such storage space may be located.

STATE. The State of California.

TAX ADMINISTRATOR. The city's Finance Director, or his or her designee.

(Ord. 1261, passed 11-6-18)

This tax is a general tax, the revenues from which may be used for unrestricted general revenue purposes of the city.

(Ord. 1261, passed 11-6-18)

(A) Every person engaged in a cannabis business within the City of Santa Paula, and regardless of whether such business has a permit to operate pursuant to the Santa Paula Municipal Code, shall pay a cannabis business tax at the following rates:

(1) Up to a maximum of 10% of gross receipts or fractional part thereof, generated by a cannabis business at wholesale or retail, subject to adjustment by the City Council pursuant to § 37.93; and

(2) Up to a maximum of $25 per square foot of space utilized in connection with cannabis cultivation/processing, subject to adjustment by the City Council pursuant to § 37.93.

(B) No cannabis business shall be deemed to be exempt from the payment of the taxes identified above by any other provision of this code, unless expressly exempted under this subchapter.

(Ord. 1261, passed 11-6-18)

All taxpayers subject to this subchapter must pay the full tax imposed by this subchapter regardless of any rebate, exemption, incentive, or other reduction set forth elsewhere in this code, except as required by California or federal law. Failure to pay the tax shall be subject to penalties, interest charges, and assessments as the City Council may establish and the city may use any or all other code enforcement remedies provided in this code. No provision in this code can lower the tax rate set forth in this subchapter or otherwise reduce the amount of taxes paid hereunder unless the provision specifically states that the reduction applies.

(Ord. 1261, passed 11-6-18)

This subchapter authorizes the maximum business tax rate as identified in § 37.91 above. The City Council may, by ordinance, upwardly or downwardly adjust the rate of the tax imposed by this subchapter and may otherwise repeal or amend this subchapter without a vote of the People. However, as required by California Constitution Article XIIIC (Proposition 218), voter approval is required for any amendment that would increase the maximum rate or methodology of any tax levied pursuant to this subchapter. The People of the City of Santa Paula affirm that the following actions shall not constitute an increase of the maximum rate or methodology of the tax requiring subsequent voter approval:

(A) The upward adjustment of the tax rate applicable to any or all classes of cannabis business, provided the rate does not exceed the maximum set forth by this voter-approved subchapter;

(B) The restoration of the tax to a rate that is no higher than the maximum set by this voter-approved subchapter, if the City Council has previously acted to reduce the rate of the tax;

(C) An action that interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this subchapter;

(D) The establishment of a class of person or service that is exempt or excepted from the tax or the discontinuation of any such exemption or exception; and

(E) Resuming collection of the tax imposed by this subchapter, even if the city had, for some period of time, either suspended collection of the tax or otherwise failed to collect the tax, in whole or in part.

(Ord. 1261, passed 11-6-18)

The payment of the tax required pursuant to this subchapter 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 subchapter implies or authorizes that any activity connected with the distribution or possession of cannabis is legal unless otherwise authorized and allowed in strict and full conformance to the provisions of state law and this code.

(Ord. 1261, passed 11-6-18)

The tax provided for under the provisions of this subchapter is not a sales, transactions or use tax and shall not be calculated or assessed as such. The tax established under this subchapter shall not be separately identified or otherwise specifically assessed or charged to any customer or client of a cannabis business.

(Ord. 1261, passed 11-6-18)

(A) This subchapter was submitted to the voters for approval. Any amendment to this subchapter to increase the tax above the maximum rate expressly provided in § 37.91 shall 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 provision of this subchapter as the City Council deems in the best interest of the city, as set forth in § 37.93.

(B) The Tax Administrator shall promulgate rules, regulations and procedures to implement and administer this subchapter to ensure the efficient and timely collection of the tax imposed by this subchapter, including without limitation, formulation and implementation of penalties and interest to be assessed for failure to pay the tax as provided.

(C) The Tax Administrator shall annually audit the taxes imposed by this subchapter to verify that tax revenues have been properly expended in accordance with the law.

(D) Pursuant to California Constitution Article XIIIB, the appropriation limit for the city is increased to the maximum extent over the maximum period of time allowed under law consistent with the revenues generated by the tax established by this subchapter.

(Ord. 1261, passed 11-6-18)

The tax shall be due and payable as follows:

(A) The tax established by this subchapter shall be collected quarterly. Each person owing tax shall prepare and file a tax return to the Tax Administrator setting out the total amount of tax owed for the preceding calendar quarter during which the tax was in effect. The return shall be filed not later than 30 calendar days following the last day of the preceding each calendar quarter. At the time the tax return is filed, the full amount of the tax owed for the preceding calendar quarter shall be remitted to the Tax Administrator.

(B) All tax returns shall be completed on forms provided by the Tax Administrator.

(C) Tax returns and payments for all outstanding taxes owed the city are immediately due to the Tax Administrator upon cessation of business for any reason.

(D) Whenever any payment, statement, report, request or other communication received by the Tax Administrator is received after the time prescribed by this section for the receipt thereof, but is in an envelope bearing a postmark showing that it was mailed on or prior to the date prescribed in this Section for the receipt thereof, or whenever the Tax Administrator is furnished substantial proof that the payment, statement, report, request, or other communication was in fact deposited in the United States mail on or prior to the date prescribed for receipt thereof, the Tax Administrator may regard such payment, statement, report, request, or other communication as having been timely received. If the due date falls on Friday, Saturday, Sunday, or a holiday, the due date shall be the next regular business day on which the City Hall is open to the public.

(E) Unless otherwise specifically provided under other provisions of this subchapter, the taxes required to be paid pursuant to this subchapter shall be deemed delinquent if not paid on or before the due date specified in division (A) of this section.

(F) The Tax Administrator is not required to send a delinquency or other notice or bill to any person subject to the provisions of this subchapter and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this subchapter.

(Ord. 1261, passed 11-6-18)

(A) Any person who fails or refuses to pay any tax required to be paid pursuant to this subchapter on or before the due date shall pay penalties and interest as follows:

(1) A penalty equal to 25% of the amount of the tax in addition to the amount of the tax, plus interest on the unpaid tax calculated from the due date of the tax at a rate established by resolution of the City Council; and

(2) An additional penalty equal to 25% of the amount of the tax if the tax remains unpaid for a period exceeding one calendar month beyond the due date, plus interest on the unpaid tax and interest on the unpaid penalties calculated at the rate established by resolution of the City Council.

(B) Whenever a check is submitted in payment of a tax and the check is subsequently returned unpaid by the bank upon which the check is drawn, and the check is not redeemed prior to the due date, the taxpayer will be liable for the tax amount due plus penalties and interest as provided for in this section plus any amount allowed under state law.

(C) The tax due shall be that amount due and payable from January 1, 2019 or the first date on which the cannabis business first engaged in business in the city, whichever date occurred last, together with applicable penalties and interest calculated in accordance with division (A) of this section.

(D) The Tax Administrator may waive the first and second penalties of 25% each imposed upon any person if:

(1) The person provides evidence satisfactory to the Tax Administrator that failure to pay timely was due to circumstances beyond the control of the person and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, and the person paid the delinquent tax and accrued interest owed the city prior to applying to the Tax Administrator for a waiver.

(2) The waiver provisions specified in this division shall not apply to interest accrued on the delinquent tax and a waiver shall be granted only once during any 24-month period.

(Ord. 1261, passed 11-6-18)

(A) No refund shall be made of any tax collected pursuant to this subchapter, except as provided in this section.

(B) No refund of any tax collected pursuant to this subchapter shall be made because of the discontinuation, dissolution, or other termination of a cannabis business.

(C) Whenever the amount of any tax, penalty, or interest has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the city under this subchapter, such amount may be refunded to the person who paid the tax provided that a written claim for refund is timely filed with the city, pursuant to this code. The period for filing a claim for refund shall be one year from the time the tax was paid or erroneously or illegally collected; provided however, that in no event shall the period to file such claim expire prior to the shortest period allowable for filing a tax refund claim under Cal. Gov't Code § 911.2. Such claim must clearly establish claimant's right to the refund by written records showing entitlement thereto, and must clearly set forth the facts and legal theories under which the claimant believes he or she has right to a refund. Where the amount of any individual refund claim is in excess of the amount set by ordinance or resolution of the City Council relating to the settlement of general liability claims against the city by the City Manager, City Council approval shall be required.

(D) The filing of a written claim pursuant to Cal. Gov't Code § 935 is a prerequisite to any suit thereon.

(E) The Tax Administrator shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the Tax Administrator to do so.

(F) Any person entitled to a refund of taxes paid pursuant to this subchapter may elect in writing to have such refund applied as a credit against a cannabis business' s taxes for the next calendar quarter.

(G) In the event that the tax was erroneously paid and the error is attributable to the city, the amount of the tax erroneously paid shall be refunded to the claimant. If the error is attributable to the claimant, the city shall retain the amount set forth in this subchapter from the amount to be refunded to cover expenses.

(H) The Tax Administrator shall initiate a refund of any tax which has been overpaid or erroneously collected whenever the overpayment or erroneous collection is uncovered by a city audit of tax revenues.

(Ord. 1261, passed 11-6-18)

(A) It shall be the duty of the Tax Administrator to enforce each and all of the provisions of this subchapter.

(B) For purposes of administration and enforcement of this subchapter generally, the Tax Administrator, with the concurrence of the City Attorney, may from time to time promulgate administrative rules and regulations.

(C) The Tax Administrator shall have the power to audit and examine all books and records of cannabis businesses as well as persons engaged in the operation of cannabis businesses, including both state and federal income tax returns, California sales tax returns, or other evidence documenting the gross receipts of or the transaction prices charged by a cannabis business or persons engaged in the operation of a cannabis business, for the purpose of ascertaining the amount of tax, if any, required to be paid by the provisions of this subchapter, and for the purpose of verifying any statements or any item thereof when filed by any person pursuant to the provisions of this subchapter. If such cannabis business or person, after written demand by the Tax Administrator, refuses to make available for audit, examination or verification such books, records, or equipment as the Tax Administrator requests, the Tax Administrator may, after full consideration of all information within the Tax Administrator's knowledge concerning the cannabis business and its business and activities of the person so refusing, make an assessment in the manner provided in § 37.101.

(D) The conviction and punishment of any person for failure to pay the required tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this subchapter or of any state law requiring the payment of all taxes.

(E) Any person violating any of the provisions of this subchapter or any regulation or rule passed in accordance herewith, or knowingly or intentionally misrepresenting to any officer or employee of the city any material fact in procuring the a cannabis business certificate or permit from the city shall be deemed guilty of a misdemeanor.

(Ord. 1261, passed 11-6-18)

(A) The amount of any tax, penalties, and interest imposed by the provisions of this subchapter shall be deemed a debt to the city and any person operating a cannabis business without having paid any applicable tax, penalties, and interest shall be liable in an action in the name of the city in any court of competent jurisdiction for the amount of the tax, and penalties and interest imposed on such cannabis business.

(B) If the Tax Administrator is not satisfied that any statement filed as required under the provisions of this subchapter is correct, or that the amount of tax is correctly computed, the Tax Administrator may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a cannabis business, a deficiency determination may be made at any time within three years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, notice shall be given to the person concerned in the same manner as notices of assessment are given under divisions (C), (D), and (E) of this section.

(C) Under any of the following circumstances, the Tax Administrator may make and give notice of an assessment of the amount of tax owed by a person under this subchapter:

(1) If the person has not filed any statement or return required under the provisions of this subchapter;

(2) If the person has not paid any tax due under the provisions of this subchapter;

(3) If the person has not, after demand by the Tax Administrator, filed a corrected statement or return, or furnished to the Tax Administrator adequate substantiation of the information contained in a statement or return already filed, or paid any additional amount of tax due under the provisions of this subchapter;

(4) If the Tax Administrator determines that the nonpayment of any tax 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 penalties and interest otherwise stated in this subchapter.

(5) The notice of assessment shall separately set forth the amount of any tax known by the Tax Administrator to be due or estimated by the Tax Administrator, after consideration of all information within the Tax Administrator's knowledge concerning the business and activities of the person assessed, to be due under each applicable section of this subchapter, and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment.

(D) The notice of assessment shall be served upon the person either by handing it to him or her personally, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the cannabis business appearing on the face of the business license issued under this code, or to such other address as he or she shall register with the Tax Administrator for the purpose of receiving notices provided under this subchapter; or, should the person have no business license issued and should the person have no address registered with the Tax Administrator for such purpose, then to such person's last known address. For the purposes of this section, a service by mail is complete at the time of deposit in the United States mail.

(E) Within ten calendar days after the date of service the person may apply in writing to the Tax Administrator for a hearing on the assessment. If application for a hearing before the City is not made within the time herein prescribed, the tax assessed by the Tax Administrator shall become final and conclusive.

(F) If the person requests a hearing, the Tax Administrator shall cause the matter to be set for hearing, which shall be held within 30 calendar days after receipt of the written request for hearing. Notice of the time and place of the hearing shall be mailed by the Tax Administrator to such person at least ten calendar days prior to the hearing, and, if the Tax Administrator desires said person to produce specific records at such hearing, such notice may designate the records requested to be produced.

(G) At the time fixed for the hearing, the Tax Administrator shall hear all relevant testimony and evidence, including that of any other interested parties. At the discretion of the Tax Administrator, the hearing may be continued from time to time for the purpose of allowing the presentation of additional evidence. Within a reasonable time following the conclusion of the hearing, the Tax Administrator shall issue a final assessment (or non-assessment), by confirming, modifying or rejecting the original deficiency determination, and shall mail a copy of such final assessment to the person owing the tax. The decision of the Tax Administrator may be appealed pursuant to § 37.102.

(H) Unless appealed, payment of the final assessment shall become delinquent if not received by the Tax Administrator on or before the thirtieth calendar day following the date of receipt of the notice of final assessment. The penalty for delinquency shall be at the rates set forth herein, along with interest at the rate as set forth by resolution of the City Council, on the amount of the tax, exclusive of penalties, from the date of delinquency, until paid. The applicable statute of limitations regarding a claim by the city seeking payment of a tax assessed under this section shall commence from the date of delinquency as provided in this division.

(Ord. 1261, passed 11-6-18)

(A) The provisions of this section apply to any deficiency determination, assessment, or administrative ruling of the Tax Administrator. Any person aggrieved by any decision, deficiency determination, assessment, or administrative ruling of the Tax Administrator, shall be required to comply with the appeals procedure of this section. Compliance with this section shall be a prerequisite to a suit thereon (see Cal. Gov't Code § 935(b)).

(B) If any person is aggrieved by any deficiency determination, assessment, or administrative ruling of the Tax Administrator; he or she may appeal to the City Manager by filing a notice of appeal with the City Clerk within ten calendar days of the date of the deficiency determination, assessment, or administrative ruling of the Tax Administrator which aggrieved the person.

(C) If the person requests an appeal, the City Clerk shall cause the matter to be set for hearing, which shall be held within 30 calendar days after receipt of the written request for appeal. Notice of the time and place of the appeal hearing shall be mailed by the City Clerk to such person at least ten calendar days prior to the hearing, and, if the City Manager desires said person to produce specific records at such hearing, such notice may designate the records requested to be produced. For the purposes of this section, a service by mail is complete at the time of deposit in the United States mail.

(D) At the time fixed for the hearing, the City Manager shall hear all relevant testimony and evidence, de novo, including that of any other interested parties. At the discretion of the City Manager, the hearing may be continued from time to time for the purpose of allowing the presentation of additional evidence. Within a reasonable time following the conclusion of the hearing, the City Manager shall issue a final decision confirming, modifying or rejecting the Tax Administrator's deficiency determination, and shall mail a copy of such final decision to the person owing the tax. The City Manager's decision shall be final and subject only to judicial review shall be pursuant to Cal. Code of Civil Procedure § 1094.6. Payment of the final assessment shall become delinquent if not received by the Tax Administrator on or before the thirtieth calendar day following the date of receipt of the City Manager's decision.

(Ord. 1261, passed 11-6-18)

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action, or proceeding in any court against this city or against any officer of the city to prevent or enjoin the collection under this subchapter of any tax or any amount of tax required to be collected and/or remitted.

(Ord. 1261, passed 11-6-18)

Unless specifically provided otherwise, any reference to a state or federal statute in this subchapter shall mean such statute as it may be amended from time to time; provided, that such reference to a statute herein shall not include any subsequent amendment thereto, or to any subsequent change of interpretation thereto by a state or federal agency or court of law, to the extent that such amendment or change of interpretation would require voter approval under California law, or to the extent that such change would result in a tax decrease. Only to the extent voter approval would otherwise be required or a tax decrease would result, the prior version of the statute (or interpretation) shall remain applicable. For any application or situation that would not require voter approval or would not result in a decrease of a tax, provisions of the amended statute (or new interpretation) shall be applicable to the maximum possible extent. To the extent that the city's authorization to collect or impose any tax imposed under this subchapter is expanded or limited as a result of changes in state or federal law, no amendment or modification of this subchapter shall be required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the authorization up to the full amount of the tax imposed under this subchapter.

(Ord. 1261, passed 11-6-18)

SUPPLEMENTAL GENERAL TRANSACTIONS AND USE TAX

This subchapter shall be known as the "City of Santa Paula General Transactions and Use Tax Ordinance". The City of Santa Paula hereinafter shall be called "city." This subchapter shall be applicable in the incorporated territory of the city.

(Ord. 1338, passed 11-5-24)

This subchapter 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 § 7251) of Division 2 of the Cal. Rev. and Tax. Code and § 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 Cal. Rev. and Tax. Code.

(C) To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore 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 Cal. Rev. and Tax. 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 subchapter.

(Ord. 1338, passed 11-5-24)

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. 1338, passed 11-5-24)

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 1% 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 this subchapter.

(Ord. 1338, passed 11-5-24)

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 California Department of Tax and Fee Administration.

(Ord. 1338, passed 11-5-24)

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 subchapter for storage, use or other consumption in said territory at the rate of 1% 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. 1338, passed 11-5-24)

Except as otherwise provided in this subchapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Cal. Rev. and Tax. Code, all of the provisions of Part 1 (commencing with § 6001) of Division 2 of the Cal. Rev. and Tax. Code are hereby adopted and made a part of this subchapter as though fully set forth herein.

(Ord. 1338, passed 11-5-24)

In adopting the provisions of Part 1 of Division 2 of the Cal. Rev. and Tax. 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, California Victim Compensation Board, California Department of Tax and Fee Administration, 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 subchapter.

(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 Cal. Rev. and Tax. 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 reference to §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Cal. Rev. and Tax. Code.

(B) The word "city" shall be substituted for the word "state" in the phrase "retailer engaged in business in this state" in § 6203 of the Cal. Rev. and Tax. Code and in the definition of that phrase in § 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 § 267(b) of Title 26 of the United States Code and the regulations thereunder.

(Ord. 1338, passed 11-5-24)

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

(Ord. 1338, passed 11-5-24)

(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 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 § 4000) of Division 3 of the Cal. Vehicle Code, aircraft licensed in compliance with § 21411 of the Cal. Pub. Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with § 9840) of the Cal. 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 this subchapter.

(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 this subchapter.

(5) For the purposes of subparagraphs (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 subchapter, 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 §§ 6366 and 6366.1 of the Cal. Rev. and Tax. Code.

(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 this subchapter.

(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 this subchapter.

(5) For the purposes of subparagraphs (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 subparagraph (7), 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 § 4000) of Division 3 of the Cal. Vehicle Code, aircraft licensed in compliance with § 21411 of the Cal. Pub. Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with § 9840) of the Cal. 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 subchapter 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 Cal. Rev. and Tax. 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. 1338, passed 11-5-24)

All amendments subsequent to the effective date of this subchapter to Part 1 of Division 2 of the Cal. Rev. and Tax. 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 Cal. Rev. and Tax. Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Cal. Rev. and Tax. Code, shall automatically become a part of this subchapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this subchapter.

(Ord. 1338, passed 11-5-24)

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 subchapter, or Part 1.6 of Division 2 of the Cal. Rev. and Tax. Code, of any tax or any amount of tax required to be collected.

(Ord. 1338, passed 11-5-24)

The tax imposed by this chapter shall continue until this subchapter is repealed.

(Ord. 1338, passed 11-5-24)