West Covina Municipal Code § 21-27 Adoption of state law as to use tax

Footnotes:

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State Law reference— Authority to levy, Rev. & T. Code, § 7201; "county" includes "city," Rev. & T. Code, § 15.

This article shall be known as the "Uniform Local Sales and Use Tax Ordinance of the City of West Covina."

(Code 1960, § 6100)

The city council hereby declares that this article is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes.

(a) Comply with state codes. To adopt a sales and use tax ordinance which complies with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Code of the state.

(b) Incorporate state revenue provisions. To adopt a sales and use tax ordinance which incorporates provisions identical to those of the Sales and Use Tax Law of the state insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.5 of Division 2 of the State Revenue and Taxation Code.

(c) Establish a one percent tax. To adopt a sales and use tax ordinance which imposes a one (1) percent 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 practical 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) Minimize administration. To adopt a sales and use tax ordinance which can be administered in a manner that will, to the degree possible consistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code, 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 the provisions of this article.

(Code 1960, § 6101)

This article shall become operative on April 1, 1956, and prior thereto the city shall contract with the state board of equalization to perform all functions incident to the administration and operation of this article; provided, that if the city shall not have contracted with the state board of equalization, as above set forth, prior to April 1, 1956, this article shall not be operative until the first day of the first calendar quarter following the execution of such a contract by the city and by the state board of equalization, provided further that this article shall not become operative prior to the operative date of the uniform local sales and use tax ordinance of the county.

(Code 1960, § 6102)

For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers in the city at the rate of one (1) percent of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the city on and after April 1, 1956.

(Code 1960, § 6103)

For the purposes of this article, 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 (1) 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 board of equalization.

(Code 1960, § 6104)

Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 of Division 2 of such Code, as amended and in force and effect on April 1, 1956, applicable to sales taxes are hereby adopted and made a part of this article as though fully set forth herein.

(Code 1960, § 6105)

Wherever, and to the extent that, in Part 1 of Division 2 of the Revenue and Taxation Code, the state is named or referred to as the taxing agency, the city shall be substituted therefor. Nothing in this section shall be deemed to require the substitution of the name of the city for the word "state" when that word is used as part of the title of the state controller, the state treasurer, the state board of control, the state board of equalization, or the name of the state treasury, or of the constitution of the state; nor shall the name of the city be substituted for that of the state in any section 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 section; and neither shall the substitution be deemed to have been made in those sections, including, but not necessarily limited to, 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 gross receipts which would not otherwise be exempt from this tax while those gross receipts remain subject to tax by the state under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code; nor to impose this tax with respect to certain gross receipts which would not be subject to tax by the state under the provisions of that Code; and, in addition, the name of the city shall not be substituted for that of the state in sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828 of the Revenue and Taxation Code as adopted.

(Code 1960, § 6106)

If a seller's permit has been issued to a retailer under section 6067 of the Revenue and Taxation Code, an additional seller's permit shall not be required by reason of this article.

(Code 1960, § 6107)

There shall be excluded from the gross receipts by which the tax levied under this article is measured:

(a) The amount of any sales or use tax imposed by the state upon a retailer or consumer.

(b) 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 this state, the United States, or any foreign government.

(Code 1960, § 6108.1; Ord. No. 1615, § 1, 12-12-83)

Editor's note— Section 5 of Ord. No. 1615 provided for the amendment to Code § 21-24 in § 1 of 1615 to become effective Jan. 1, 1984. Section 6 of Ord. No. 1615 provides as follows:

Sections 3 and 4 of this Ordinance shall be operative on the operative date of any act of the Legislature of the State of California which amends or repeals and reenacts Section 7202 of the Revenue and Taxation Code 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 Section 7202 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983.

The amendment to Code § 21-24 enacted by § 3 of Ord. No. 1615 reads as follows:

There shall be excluded from the gross receipts by which the tax is measured:

(a) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(b) 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.

(c) 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 this state, the United States, or any foreign government.

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 or after April 1, 1956, for storage, use or other consumption in the city at the rate of one (1) percent 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.

(Code 1960, § 6109)

There shall be exempt from the use tax due under this article:

(a) The amount of 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 sales tax under a sales and use tax ordinance enacted in accordance with part 1.5 of division 2 of the Revenue and Taxation Code by any city and county, county, or city in this state.

(c) In addition to the exemptions provided in sections 6366 and 6366.1 of the Revenue and Taxation Code, 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 this state, the United States, or any foreign government.

(Code 1960, § 6112.1; Ord. No. 1615, § 2, 12-12-83)

Editor's note— Section 5 of Ord. No. 1615 provided for the amendment to Code § 21-26 in § 2 of 1615 to become effective Jan. 1, 1984. Section 6 of Ord. No. 1615 provides as follows:

Sections 3 and 4 of this Ordinance shall be operative on the operative date of any act of the Legislature of the State of California which amends or repeals and reenacts Section 7202 of the Revenue and Taxation Code 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 Section 7202 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983.

The amendment to Code § 21-26 enacted by § 4 of Ord. No. 1615 reads as follows:

There shall be exempt from the tax due under this section:

(a) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(b) The storage, use or other consumption of tangible personal property, the gross receipts from the sale of which has been subject to sales tax under a sales and use tax ordinance enacted in accordance with part 1.5 of division 2 of the Revenue and Taxation Code by any city and county, county, or city in this state.

(c) 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.

(d) In addition to the exemptions provided in sections 6366 and 6366.1 of the Revenue and Taxation Code, 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 this state, the United States, or any foreign government.

Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 of Division 2 of said Code, as amended and in force and effect on April 1, 1956, applicable to use taxes are hereby adopted and made a part of this article as though fully set forth herein.

(Code 1960, § 6110)

Wherever, and to the extent that, in Part 1 of Division 2 of the Revenue and Taxation Code the state is named or referred to as the taxing agency, the name of this city shall be substituted therefor. Nothing in this subsection shall be deemed to require the substitution of the name of this city for the word "state" when that word is used as part of the title of the state controller, the state treasurer, the state board of control, the state board of equalization, or the name of the state treasury, or of the constitution of the state of California; nor shall the name of the city be substituted for that of the state in any section 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 article; and neither shall the substitution be deemed to have been made in those sections, including but not necessarily limited to, 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 storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such storage, use or other consumption remains subject to tax by the state under the provisions of part I of division 2 of the Revenue and Taxation Code, or to impose this tax with respect to certain storage, use or other consumption of tangible personal property which would not be subject to tax by the state under such provisions of that code; and in addition, the name of the city shall not be substituted for that of the state in sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828 of the Revenue and Taxation Code as adopted, and the name of the city shall not be substituted for the word "state" in the phrase "retailer engaged in business in this state" in section 6203 nor in the definition of that phrase in section 6203.

(Code 1960, § 6111)

All amendments of the Revenue and Taxation Code enacted subsequent to April 1, 1956, which relate to the sales and use tax and which are not inconsistent with part 1.5 of division 2 of the Revenue and Taxation Code shall automatically become a part of this article.

(Code 1960, § 6113)

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 article, or part 1.5 of division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

(Code 1960, § 6114)

At the time this article goes into operation, the provisions of Ordinance Nos. 369 and 422 shall be suspended and shall not again be of any force or effect until and unless for any reason the state board of equalization ceases to perform the functions incident to the administration and operation of the sales and use tax hereby imposed; provided, however, that, if for any reason it is determined that the city is without power to adopt this article, or that the state board of equalization is without power to perform the functions incident to the administration and operation of the taxes imposed by this article, the provisions of Ordinance Nos. 369 and 422 shall not be deemed to have been suspended, but shall be deemed to have been in full force and effect at the rate of one (1) percent continuously from and after April 1, 1956. Upon the ceasing of the state board of equalization to perform the functions incident to the administration and operation of the taxes imposed by this article, the provision of Ordinance Nos. 369 and 422 shall again be in full force and effect at the rate of one (1) percent. Nothing in this article shall be construed as relieving any person of the obligation to pay to the city any sales or use tax accrued and owing by reason of the provisions of Ordinance Nos. 369 and 422 in force and effect prior to and including March 31, 1956.

(Code 1960, § 6115)

Editor's note— Ord. No. 2505, § 2, adopted November 1, 2022, repealed § 21-32, which pertained to credit for taxes due to Redevelopment Agency of the City of West Covina and derived from Ord. No. 1818, § 1, adopted July 10, 1989.