Torrance Municipal Code Art. 1 Sales of Tangible Personal

220.1.1 IMPOSITION AND RATE OF TAX.

For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers at the rate of one (1) percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City on or after August 15, 1955.

220.1.2 IN ADDITION TO ALL OTHER TAXES.

The license tax imposed by the provisions of Section 220.1.1. is in addition to any and all other taxes imposed by any other license tax ordinance of the City.

220.1.3 TAX LEVIED IN SAME MANNER AS STATE TAX.

The tax levied by this Article, except as otherwise herein provided, is levied in the same manner, to the same extent and under the same conditions as sales taxes are levied pursuant to Part 1 of Division 2 of the California Revenue and Taxation Code, known as the Sales and Use Tax Law, as amended and in force and effect on December 1, 1947.

220.1.4 ADOPTION OF STATE SALES AND USE TAX LAW; ADDITIONAL EXEMPTIONS.

All of the provisions of the Sales and Use Tax Law, as amended and in force and effect on October, 1946, except the provisions thereof pertaining solely to the Use Tax and Sections 6051, 6052, 6053, 6066, 6067, 6068, 6069, 6070, 6071, 6451, 7052, 7056, 7101, 7102, 7103, 7151, 7152 and 7153, applicable to sales of property at retail, are hereby adopted and made a part of this Article as though fully set forth herein, and all provisions of any other provision of this Chapter, this Code or any other ordinance of the City in conflict therewith are inapplicable to this Article, and the tax hereby imposed; provided, however, that the term "gross receipts" as used herein, does not include the amount of any tax imposed by the State upon or with respect to retail sales whether imposed upon the retailer or upon the consumer.

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

a) Sales made to or by the State, or any agency, department, political subdivision, district or municipal corporation thereof;

b) Sales of property which is shipped to a point outside the City pursuant to the contract of sale by delivery by the retailer to such points by means of:

Facilities operated by the retailer;
Delivery by the retailer to a carrier for shipment to a consignee at such point; or
Delivery by the retailer to a customs broker or for the forwarding agent for shipment outside this City;

c) Sales of property to be used in connection with the erection, construction, repair or alteration of either public works, or buildings belonging to or being constructed by or on behalf of, or for the use of the United States government, the State or any agency, department, political subdivision, district or public or municipal corporation of the State;

d) Sales of property which is shipped from outside the City to purchasers within the City and which property, before being put to any use within the City, is transported to points without the City for principal use or other consumption outside the City;

e) Sales of property to operators of common carriers and waterborne vessels to be used or consumed, in the operation of such common carriers or waterborne vessels, principally outside the City;

f) Sales of property by manufacturers to purchasers engaged in manufacturing or commercial enterprises located wholly or partly outside the City where the property is to be transported outside the City without undue delay. Such property is to be used only outside the City and exclusively in such commercial or manufacturing enterprises; provided, this exemption shall not apply to sales made to officers, agents, managers, employees or servants of such purchasers. The purchaser shall deliver to the seller such certificate or other evidence of the proposed transportation and use mentioned herein as may be required by the City Clerk of the City.

g) Sales of property upon which a sales tax, purchase tax, use tax, purchase and use tax, or any of these has been legally imposed by and paid on the same transaction to any City of the State having a similar reciprocal exemption.

220.1.5 ALLOCATION OF DUTIES TO CITY OFFICIALS.

All of the provisions of the Sales and Use Tax Law adopted by the preceding section, providing for the adoption of rules and regulations and for hearings on the part of the State Board of Equalization shall be performed by the City Council. All other provisions of the Sales and Use Tax Law, providing for the performance of official action on the part of the State Board of Equalization shall be performed by the City Clerk.

The City shall be deemed substituted for the State whenever the State is referred to in the Sales and Use Tax Law.

The City Attorney shall be deemed substituted for the Attorney General whenever the Attorney General is referred to in the Sales and Use Tax Law.

The City Auditor shall be deemed substituted for the State Controller and State Board of Control whenever the State Controller and State Board of Control are referred to in the Sales and Use Tax Law.

The County of Los Angeles shall be deemed substituted for the County of Sacramento whenever the County of Sacramento is referred to in the Sales and Use Tax Law.

220.1.6 APPOINTMENT AND DUTIES OF DELINQUENT SALES TAX ADMINISTRATOR.

(Amended by O-434)

It shall be the duty of the delinquent sales tax administrator, when so appointed by the City Council, to perform the duties incident to the collection of delinquent sales taxes due, owing and unpaid the City and to proceed to collect any and all delinquent license fees which are due, owing and unpaid the City at the date this Section takes effect and which may thereafter become due the City by reason of delinquency, and to take such action and perform such further duties in respect to the collection of delinquent taxes as the City Council may hereafter prescribe and set forth.

220.1.7 ADOPTION OF RULES AND REGULATIONS OF STATE BOARD OF EQUALIZATION.

The rules and regulations of the State Board of Equalization pertaining to the interpretation, administration and enforcement of the Sales and Use Tax Law, insofar as applicable to the City, shall apply in the interpretation of this Article until specifically abandoned by the rules and regulations adopted by the City Council pursuant to this Article.

220.1.8 EFFECT OF INCLUSION OF PORTIONS OF STATE LAW VERBATIM RELATIVE TO ADOPTION.

The inclusion of any clause, portion or part of the Sales and Use Tax Law, Part 1, Division 2 of the Revenue and Taxation Code of the State verbatim in this Article shall not in or of itself be deemed to exclude any of the remaining provisions of the Sales and Use Tax Law that are made a part hereof by reference only.

220.1.9 PERMIT REQUIRED; APPLICATION.

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

220.1.10 PERMIT FEE.

At the time of making application for a permit, under the preceding Section, the applicant shall pay to the City Clerk a permit fee of One Dollar ($1.00) for each permit.

220.1.11 ISSUANCE OF PERMIT; SEPARATE PERMIT REQUIRED FOR EACH PLACE OF BUSINESS.

After compliance with the two preceding sections by the applicant, the City Clerk shall grant and issue to each applicant a separate permit for each place of business within the City.

220.1.12 PERMIT NOT ASSIGNABLE; FEE FOR CHANGE OF LOCATION OF BUSINESS.

A permit required by this Article is not assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated therein; provided, however, that a change of location may be endorsed upon the permit by the City Clerk upon the payment of a fee of One Dollar ($1.00).

220.1.13 DISPLAY OF PERMIT.

The permit required by this Article shall at all times be conspicuously displayed at the place for which issued.

220.1.14 REVOCATION OF PERMIT; ISSUANCE OF NEW PERMIT AFTER REVOCATION.

Whenever any person fails to comply with any of the provisions of this Article, or any rule or regulation adopted pursuant hereto, the City Council upon hearing, after giving the person ten (10) days notice in writing, specifying the time and place of hearing and requiring him to show cause why his permit or permits should not be revoked, may revoke or suspend any one or more of the permits held by the person. The notice may be served personally or by mail in the manner prescribed for the service of notice of a deficiency determination under the Sales and Use Tax Law. The City Clerk shall not issue a new permit after the revocation of a permit unless the City Council is satisfied that the former holder of a permit will comply with the provisions of this Article and the rules and regulations adopted pursuant hereto and directs the City Clerk to issue such permit.

220.1.15 FEE FOR ISSUANCE OF NEW PERMIT AFTER REVOCATION.

A seller whose permit has been previously suspended or revoked, shall pay the City Clerk a fee of One Dollar ($1.00) for the renewal or reissuance of a permit.

220.1.16 CARRYING ON BUSINESS WITHOUT PERMIT.

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

220.1.17 WHEN TAX DUE AND PAYABLE; GRANTING OF EXTENSION; PENALTY ON DELINQUENT PAYMENTS.

The license taxes imposed by this Article are due and payable to the City Clerk on or before the last day of the month next succeeding each quarterly period.

The City Clerk, for good cause, may extend for not more than thirty (30) days, the time for making any return or paying any sum required to be paid by this Article. The extension may be granted at any time; provided, that a written request therefor is filed with the City Clerk prior to the delinquency date.

All taxes payable monthly and all taxes payable quarterly under this Article shall be deemed delinquent if not paid on or before the close of business on the last day of the month following the monthly or quarterly period for which the tax is payable. Taxes payable under this Article for periods other than monthly or quarterly periods shall be deemed delinquent at the times designated by the City Clerk in his rules and regulations. Whenever any tax required to be paid by this Article is not paid on or before the date on which it becomes delinquent, a penalty of ten (10) percent of the amount due shall be imposed and an additional five (5) percent of the original tax shall be added at the close of business on the last day of each calendar month thereafter. Every penalty shall become part of the tax imposed by this Article. In no case, however, shall the total penalty exceed fifty (50) percent of the original tax.

220.1.18 TAX TO BE COLLECTED FROM CONSUMER.

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

220.1.19 REPRESENTATIONS BY RETAILER AS TO ABSORPTION OF TAX PROHIBITED.

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

220.1.20 TAXES PAYABLE TO CITY CLERK; COLLECTION BY CIVIL SUIT.

All taxes levied by this Article shall be payable to the City Clerk. Any civil suit for collection of such taxes may be filed in any Court of competent jurisdiction in the State, and the City Attorney shall prosecute the action.

220.1.21 EVIDENCE THAT SALE IS NOT A SALE AT RETAIL.

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

220.1.22 DISPOSITION OF PROCEEDS.

All monies collected under and pursuant to the provisions of this Article shall be deposited and paid into the general fund of the City.

220.1.23 INFORMATION NOT TO BE DIVULGED BY CITY OFFICIALS; EXCEPTIONS.

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

220.1.24 FALSE OR FRAUDULENT RETURNS.

Any person required to make, render, sign or verify any report under the provisions of this Article, who makes any false or fraudulent return, with the intent to defeat or evade the determination of any amount due and required to be paid, under the provisions of this Article, shall be guilty of a misdemeanor, and upon conviction thereof shall be punished as provided by Sec. 11.2.1. of this Code.