Ventura Municipal Code Ch. 4.120 SALES TAX (Suspended by Chapter 4.128) 4

4 Editor’s note(s): Ord. No. 2000-15, § 3, adopted June 13, 2000, changed the title of Chapter 4.120 from “Sales Tax” to “Sales Tax (Suspended by Chapter 4.128).”

Cross reference(s) – Existing sales and use tax ordinances suspended, Section 4.128.190.

State law reference(s) – Sales and use taxes generally, Rev. and Tax. Code, Sections 6001 through 7176; uniform local sales and use taxes, Rev. and Tax. Code, Sections 7200 through 7209.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers at the rate of one 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 October 1, 1955. The license tax imposed by the provisions of this chapter is in addition to any and all other taxes imposed by the city. Notwithstanding the foregoing provisions of this section, the rate of tax applied to gross receipts resulting from the sale of tangible personal property at prices, including city sales tax, agreed upon in contracts executed in good faith prior to October 1, 1955, shall be that rate in effect when the contract was executed. (Code 1971, § 1531)

The tax hereby levied, except as otherwise herein provided, is levied in the same manner, to the same extent and under the same conditions as sales taxes are levied pursuant to Part 1 of Division 2 of the California Revenue and Taxation Code known as the “Sales and Use Tax Law,” as amended and in force and effect on October 1, 1949. Section 7057 of the Revenue and Taxation Code of the state of California relating to the duties of state officers with respect to the administration of the Unemployment Insurance Act shall be inapplicable to this chapter and the tax hereby imposed. (Code 1971, § 1532)

A. Exceptions.

1. All of the provisions of the “Sales and Use Tax Law,” as amended and in force and effect on September 7, 1955, except the provisions thereof pertaining solely to the “use tax” and Sections 6051, 6052, 6053, 6066, 6067, 6068, 6069, 6070, 6071, 6451, 7052, 7056, 7101, 7102, 7151, 7153, applicable to sales of property at retail, are hereby adopted and made a part of this section as though fully set forth herein, and all provisions of any other ordinances in conflict therewith are inapplicable to this section and the tax hereby imposed.

2. The term “gross receipts,” as used herein, does not include the amount of any tax imposed by the state of California upon or with respect to retail sales whether imposed upon the retailer or upon the consumer.

3. The term “sale” shall mean and include, in addition to the meanings contained in subsection (A)(1) of this section, the withdrawal by a retailer in this city of tangible personal property from a place in this city, from a place in California outside this city under the control of the retailer or from a place in California outside this city at the order of the retailer, for delivery in any manner at a point in California outside this city under such circumstances that the transaction of which the withdrawal is a part would have been considered a sale within the meaning of subsection (A)(1) of this section had the point of delivery been within this city. Provided, however, that withdrawals pursuant to a transaction in foreign or interstate commerce shall not be sales for the purpose of this section. Charges made for the delivery of tangible personal property so withdrawn shall be included in the gross receipts by which the tax imposed under this section is measured unless such charges are separately stated and are imposed for transportation which occurs after the sale of the property.

B. Substitutions.

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

City. The city shall be deemed substituted for the state of California whenever the state is referred to in said “Sales and Use Tax Law.”

Controller. The controller shall be deemed substituted for the State Controller and State Board of Control whenever the State Controller or State Board of Control are referred to in said “Sales and Use Tax Law.”

Council. All of the provisions of the “Sales and Use Tax Law” hereby adopted providing for the adoption of rules and regulations and for hearings on the part of the State Board of Equalization, shall be performed by the council. All other provisions of the “Sales and Use Tax Law” hereby adopted, providing for the performance of official action on the part of the State Board of Equalization shall be performed by the treasurer.

County. The county of Ventura shall be deemed substituted for the county of Sacramento whenever the county of Sacramento is referred to in said “Sales and Use Tax Law.”

C. Exemptions. In addition to those exemptions contained in Part 1 of Division 2 of the Revenue and Taxation Code of the state of California, included in this chapter by reference, there shall be excluded from the computation of the tax gross receipts from:

1. The amount of any sale or use tax imposed by the state of California upon a retailer or consumer.

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

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

4. Sales made pursuant to contracts actually executed in good faith prior to the effective date of this section.

D. Adoption of Rules and Regulations by Reference – Interpretations. The rules and regulations of the State Board of Equalization as amended and in force and effect on June 30, 1956, pertaining to the interpretation, administration, and enforcement of the “Sales and Use Tax Law,” insofar as applicable, except Rule No. 55 (Section 2015, Title 18, California Administrative Code, Sales and Use Tax) shall apply in the interpretation of this chapter until specifically abandoned by the rules and regulations adopted by the city council of San Buenaventura pursuant to this section. The word “city” shall be deemed substituted for the word “state” whenever the word “state” appears in said rules and regulations.

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

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

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

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

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

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

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

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

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

e. “Element of sale” is hereby defined to include solicitation of an order, the acceptance of an order, the giving of an order, whether such order is given in person, by telephone or by mail, the payment of the purchase price, or the transfer of possession of the goods.

f. The city treasurer may approve the payment of the sales tax by retailers located outside the city in accordance with a formula if the city treasurer finds that the formula will produce the same or approximately the sales tax as if detailed accounting procedures had been followed. A retailer desiring to use such a formula shall furnish such information as may be required by the city treasurer, to enable the treasurer to make the required finding. The formula may be used by the retailer for such period of time, not to exceed one year, as may be authorized by the city treasurer in writing, and is subject to renewal, upon application, for periods not to exceed one year.

Payment in full of sales taxes in accordance with an approved formula shall constitute full satisfaction of the retailer’s sales tax liability.

Penalties. Any person, firm or corporation violating any of the terms of this chapter shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than $500.00 or by imprisonment for a period of not more than six months, or by both such fine and imprisonment.

Severability. If any section, subsection, sentence, clause, phrase, or portion of this chapter is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this chapter. The council of this city hereby declares that it would have adopted the ordinance codified in this chapter and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, clauses, phrases or portions be declared invalid or unconstitutional.

E. Verbatim Excerpts Shall Not Exclude Balance. The inclusion of any clause, portion or part of the “State Sales and Use Tax Law,” Part 1, Division 2 of the Revenue and Taxation Code of the state of California, or the rules and regulations of the State Board of Equalization, verbatim in this chapter shall not in or of itself be deemed to exclude any of the remaining provisions of said “Sales and Use Tax Law,” or rules and regulations that are made a part hereof by reference only. (Code 1971, § 1533)

A. Requirements. Every person desiring to engage in or conduct business as a seller within the city shall file with the treasurer an application for a permit for each place of business from which taxable sales will be made. Every application for a permit shall be made upon a form prescribed by the treasurer and shall set forth the name under which the applicant transacts or intends to transact business, the location of the applicant’s place of business, and such other information as the treasurer 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 the person’s authority.

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

C. Permit Fees. At the time of making an application for a permit, and at the time a change of location is endorsed upon a permit, the applicant for a permit or for an endorsement of a change of location on a permit shall pay to the treasurer a fee of $1.00.

D. Revocation of Permit. Whenever any person fails to comply with any of the provisions of this chapter or any rule or regulation adopted pursuant hereto, the council, upon hearing, after giving the person 10 days’ notice in writing specifying the time and place of hearing and requiring the person to show cause why the person’s 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 treasurer shall not issue a new permit after the revocation of a permit unless the council is satisfied that the former holder of a permit will comply with the provisions of this chapter and the rules and regulations adopted pursuant hereto, and directs the treasurer to issue such permit.

E. Renewal of Permit. A seller whose permit has been previously suspended or revoked shall pay the treasurer a fee of $1.00 for the renewal or issuance of a permit.

F. Failure to Get Permit. A person who engages in business as a seller in the city without a permit or permits, or after a permit has been suspended or revoked and before the renewal or issuance of a permit, and each officer of any corporation which so engages in business, is guilty of a misdemeanor. (Code 1971, § 1534)

A. When Due – Treasurer’s Requirements. The taxes imposed by this chapter are due and payable to the treasurer on or before the last day of the month next succeeding each quarterly period, the first quarterly payment to be due and payable under this chapter on the last day of October, 1948. The treasurer may require returns and payment of the amount of taxes for quarterly periods other than calendar quarters, depending upon the principal place of or the nature of the business of the seller or retailer, or may require returns and payment of the amount of taxes for other than quarterly periods.

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

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

D. Extension of Time – Waiver or Compromise. The treasurer shall have power, for good cause shown, to extend for a period of not to exceed 31 days the time for making any return or paying any amount required to be paid under this chapter when requested so to do in writing, before the same becomes delinquent. The treasurer may, with the written approval of the attorney, waive or compromise any penalty or interest that would otherwise accrue under the provisions of this chapter.

E. Disposition of Proceeds. All moneys collected under and pursuant to the provisions of this chapter shall be deposited and paid into the general fund of the city. This chapter is adopted to provide income and revenue necessary to pay the usual and current municipal government expense in the city.

F. Suit for Tax. All taxes hereby levied shall be payable to the treasurer, and any civil suit for the collection thereof may be filed in any court of competent jurisdiction in the state of California, and the attorney shall prosecute the action. (Code 1971, § 1535)

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

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

C. False Returns. Any person required to make, render, sign or verify any report under the provisions of this chapter who makes any false or fraudulent return, with intent to defeat or evade the determination of an amount due and required to be paid hereunder, is guilty of a misdemeanor.

D. Violations. Any person, firm or corporation violating any of the terms of this chapter shall be deemed guilty of a misdemeanor. (Code 1971, § 1536)