Seal Beach Municipal Code Ch. 4.25 Sales and Use Tax

The ordinance codified in this chapter has been adopted to achieve, and shall be interpreted to accomplish, the following purposes:

A. To adopt sales and use tax ordinance that complies with the requirements and limitations contained in Revenue and Taxation Code Division 2, Part 1.5.

B. To adopt sales and use tax ordinance that incorporates provisions identical to those of the California Sales and Use Tax Law insofar as those provisions are not inconsistent with the requirements and limitations contained in Revenue and Taxation Code Division 2, Part 1.5.

C. To adopt a sales and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the state board of equalization in administering and collecting state sales and use taxes.

D. To adopt a sales and use tax ordinance that can be administered in a manner that will, to the degree possible, minimize the cost of collecting city sales and use taxes and at the same time minimize the burden of record keeping upon persons subject to taxation under this chapter.

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The operative date of the ordinance codified in this chapter is January 1, 1974.

(Ord. 1515)

The rate of sales tax and use tax imposed by this chapter shall be 1%.

(Ord. 1515)

The city shall contract with the state board of equalization to perform all functions incident to the administration and operation of this sales and use tax ordinance.

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For the privilege of selling tangible personal property at retail a tax shall be imposed upon all retailers in the city at the rate stated in this chapter of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the city on and after the operative date.

(Ord. 1515)

A. 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 retailer's 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.

B. In the event a retailer has no permanent place of business in the state or has multiple places of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations of the State Board of Equalization.

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An excise tax shall be imposed on the storage, use or other consumption in this city of tangible personal property purchased from any retailer on and after the operative date for storage, use or other consumption in this city at the rate stated in this chapter 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.

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Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Revenue and Taxation Code Division 2, Part 1.5, all of the provisions of Revenue and Taxation Code Division 2, Part 1 are hereby adopted and made a part of this chapter as though fully set forth herein.

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In adopting the provisions of Revenue and Taxation Code Division 2, Part 1, wherever the state is named or referred to as the taxing agency, the name of the city shall be substituted therefor. Notwithstanding the preceding, the substitution shall not be made in the following circumstances:

A. When the word "state" is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, the State Treasury, or the Constitution of the State of California.

B. When the result of that substitution would require action to be taken by or against the city, or any agency thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this chapter.

C. In those sections, including without limitation sections referring to the exterior boundaries of the state, where the result of the substitution would be to provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property that 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 Revenue and Taxation Code Division 2, Part 1, or to impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property that would not be subject to tax by the state under such provisions.

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

E. In the phrase "retailer engaged in business in this State" in Revenue and Taxation Code Section 6203 or in the definition of that phrase in Section 6203.

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If a seller's permit has been issued to a retailer under Revenue and Taxation Code Section 6067, an additional seller's permit shall not be required by this chapter.

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A. The amount subject to tax shall not include any sales or use tax imposed by the state upon a retailer or consumer.

B. The storage, use, or other consumption of tangible personal property, the gross receipts from the sales of which have been subject to tax under a sales and use tax ordinance enacted in accordance with Revenue and Taxation Code Division 2, Part 1.5 by any city and county, county, or city, in this state shall be exempt from the tax due under this chapter.

C. There are exempted from the computation of the amount of the sales tax the gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the city in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of the state, the federal government, or any foreign government.

D. In addition to the exemptions provided in Revenue and Taxation Code Sections 6366 and 6366.1, the storage, use or other consumption of tangible personal property purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of the state, the federal government, or any foreign government is exempted from the use tax.

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A. The amount subject to tax shall not include any sales or use tax imposed by the state upon a retailer or consumer.

B. The storage, use, or other consumption of tangible personal property, the gross receipts from the sale of which have been subject to tax under a sales and use tax ordinance enacted in accordance with Revenue and Taxations Code Division 2, Part 1.5 by any city and county, county, or city in the state shall be exempt from the tax due under this chapter.

C. There are exempted from the computation of the amount of the sales tax the gross receipts from the sale of tangible personal property to operators of waterborne vessels to be used or consumed principally outside the city in which the sale is made and directly and exclusively in the carriage of persons or property in such vessels for commercial purposes.

D. The storage, use, or other consumption of tangible personal property purchased by operators of waterborne vessels and used or consumed by such operators directly and exclusively in the carriage of persons or property in such vessels for commercial purposes is exempted from the use tax.

E. There are exempted from the computation of the amount of the sales tax the gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the city in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of the state, the federal government or any foreign government.

F. In addition to the exemptions provided in Revenue and Taxations Code Sections 6366 and 6366.1 the storage, use or other consumption of tangible personal property purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws to the state, the federal government, or any foreign government is exempted from the use tax.

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This Section 4.25.055 shall be operative on the operative date of any act of the California Legislature amending Revenue and Taxation Code Section 7202 or repealing and reenacting Revenue and Taxation Code Section 7202 to provide an exemption from city sales and use taxes for operators of waterborne vessels in the same, or substantially the same, language as that existing in subdivisions (i)(7) and (i)(8) of Revenue and Taxations Code Section 7202 as those subdivisions read on October 1, 1983.

All subsequent amendments of the Revenue and Taxation Code that relate to the sales and use tax and are not inconsistent with Revenue and Taxations Code Division 2; Part 1.5 shall automatically become a part of this chapter.

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No injunction or writ of mandate or other legal or equitable process shall issue in any suit, or action against proceedings 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 chapter, or Revenue and Taxations Code Division 2, Part 1.5 of any tax or any amount of tax required to be collected.

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