Chapter 3.28 SALES AND USE TAX*

* For statutory provisions authorizing cities to levy sales and use taxes, see Government Code § 37101; for provisions on uniform local sales and use taxes, see Revenue and Taxation Code § 7200 et seq.; for provisions on sales and use taxes generally, see Revenue and Taxation Code § 6001 et seq.

Article I. General Provisions

3.28.010 Title.

The ordinance codified in this chapter shall be known as the “Uniform Local Sales and Use Tax Ordinance” of the City. (Ord. 224 N.S. § 1, 1956).

3.28.020 Purpose.

The City Council declares that this chapter is adopted to achieve the following, among other, purposes and directs that the provisions of this chapter be interpreted in order to accomplish those purposes:

A. 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 of California;

B. To adopt a sales and use tax ordinance which 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 1.5 of Division 2 of the Revenue and Taxation Code;

C. To adopt a sales and use tax ordinance which imposes a one 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 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 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 recordkeeping upon persons subject to taxation under the provisions of this chapter. (Ord. 38 C.S. § 1, 1962; Ord. 224 N.S. § 1, 1956; Code 1975 § 300.0).

3.28.030 Operative Date – Contract With State.

The ordinance codified in this chapter shall become operative on July 1, 1956, and prior thereto this City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of the ordinance codified in this chapter; provided, that if the City has not contracted with the State Board of Equalization, as set forth in this section, prior to July 1, 1956, the ordinance codified in this chapter 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 the ordinance codified in this chapter shall not become operative prior to the operative date of the Uniform Local Sales and Use Tax Ordinance of the County of Monterey. (Ord. 224 N.S. § 1, 1956; Code 1975 § 300.1).

Article II. Sales Tax

3.28.040 Retail Sales Tax – Rate.

For the privilege of selling tangible personal property at retail a tax is imposed upon all retailers in the City at the rate of one 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 the operative date of the ordinance codified in this chapter. (Ord. 224 N.S. § 1, 1956; Code 1975 § 301.2(a)(1)).

3.28.050 Determination of Places of Business.

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 her/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, 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 State Board of Equalization. (Ord. 38 C.S. § 2, 1961; Ord. 224 N.S. § 1, 1956; Code 1975 § 301.2(a)(2)).

3.28.060 Adoption of State Statute.

Except as provided in this chapter 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 the Code, as amended and in force and effect on July 1, 1956, applicable to sales taxes are adopted and made a part of this section as though fully set forth in this section. (Ord. 224 N.S. § 1, 1956; Code 1975 § 301.2(b)(1)).

3.28.070 Substitution of “City” for “State” in State Revenue Code – Exceptions.

Whenever, and to the extent that, in Part 1 of Division 2 of the Revenue and Taxation Code, the State of California is named or referred to as the taxing agency, the “City” shall be substituted therefor. Nothing in this chapter 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 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 chapter; 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 of California, 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. (Ord. 224 N.S. § 1, 1956; Code 1975 § 301.2(b)(2)).

3.28.080 Duplication of Seller’s Permit.

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 chapter. (Ord. 303 C.S. § 1, 1973; Ord. 224 N.S. § 1, 1956; Code 1975 § 301.2(b)(3)).

3.28.090 Gross Receipts – Additional Exemptions.*

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 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. (Ord. 84-4 § 1, 1984; Ord. 303 C.S. § 2, 1973; Ord. 224 N.S. § 1, 1956; Code 1975 § 301.2(b)(4.5)).

* Ord. 84-4, Section 5, includes the following language on operability:

Section 1 of Ord. 84-4 shall be operative January 1, 1984.

3.28.090 Gross Receipts – Additional Exemptions.*

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 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. (Ord. 84-4 § 3, 1984; Ord. 303 C.S. § 2, 1973; Ord. 224 N.S. § 1, 1956; Code 1975 § 301.2(b)(4.5)).

* Ord. 84-4, Section 5, includes the following language on operability:

Section 3 of Ord. 84-4 shall be operative on the operative date of any act of the Legislature of the State which amends or repeals and re-enacts 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.

Article III. Use Tax

3.28.100 Imposition.

An excise tax is imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on or after the operative date of the ordinance codified in this chapter for storage, use or other consumption in the City at the rate of one 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. (Ord. 224 N.S. § 1, 1956; Code 1975 § 301.3(a)).

3.28.110 Adoption of State Statute.

Except as provided in this chapter, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code, as amended and in force and effect on July 1, 1956, applicable to use taxes are adopted and made a part of this section as though fully set forth in this section. (Ord. 224 N.S. § 1, 1956; Code 1975 § 301.3(b)(1)).

3.28.120 Substitution of “City” for “State” in State Revenue Code – Exceptions.

Wherever, and to the extent that, in Part 1 of Division 2 of the Revenue and Taxation Code the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. Nothing in this chapter 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 chapter; 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 of California, 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 1 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 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, 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. (Ord. 38 C.S § 5, 1961; Ord. 224 N.S. § 1, 1956; Code 1975 § 301.3(b)(2)).

3.28.130 Additional Exemptions.*

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. 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. (Ord. 84-4 § 2, 1984; Ord. 303 C.S. § 3, 1973; Ord. 224 N.S. § 1, 1956; Code 1975 § 301.3(b)(3.5)).

* Ord. 84-4 Section 5 includes the following language on operability:

Section 2 of Ord. 84-4 shall be operative January 1, 1984.

3.28.130 Additional Exemptions.*

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

A. The amount of any sales or use tax imposed by the State upon a retailer or consumer;

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 directly and exclusively in the use of such aircraft as common carriers or 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. (Ord. 84-4 § 4, 1984; Ord. 303 C.S. § 3, 1973; Ord. 224 N.S. § 1, 1956; Code 1975 § 301.3(b)(3.5)).

* Ord. 84-4 Section 6 includes the following language on operability:

Section 4 of Ord. 84-4 shall be operative on the operative date of any act of the Legislature of the State which amends or repeals and re-enacts 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.

3.28.140 Amendments to State Statute Amend Chapter.

All amendments of the Revenue and Taxation Code enacted subsequent to the effective date of the ordinance codified in this chapter 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 chapter. (Ord. 224 N.S. § 1, 1956; Code 1975 § 301.4).

3.28.150 Enjoining Collection.

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, to prevent or enjoin the collection under this chapter, 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. (Ord. 224 N.S. § 1, 1956; Code 1975 § 301.5).

3.28.160 Violation – Penalty.

Any person violating any of the provisions 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 in the City jail or the County jail or by both such fine and imprisonment. (Ord. 224 N.S. § 1, 1956; Code 1975 § 301.7).

Article IV. Transactions and Use Tax

3.28.170 Imposition.

A transactions and use tax is hereby imposed as a general tax on the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City for a period of 20 years, and upon the sales price of tangible personal property stored, used or otherwise consumed in the City as further set forth below. (Ord. 2019-04 § 2, 2020; Ord. 2012-08 § 1, 2012).

3.28.180 Operative Date.

The transactions and use tax imposed herein shall be operative the first day of the first calendar quarter commencing more than 110 days after the adoption of the ordinance codified in this article. Based upon a March 3, 2020, election, the operative date for the transactions and use tax imposed hereunder shall be July 1, 2020. (Ord. 2019-04 § 2, 2020).

3.28.190 Purpose.

The ordinance codified in this article is adopted to achieve the following purposes, among others, and directs that the provisions hereof be interpreted in order to accomplish these purposes:

A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 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 approve the imposition of the tax at an election called for that purpose. The tax is a general tax whose proceeds shall be deposited in the City’s general fund and expended for any lawful purpose of the City.

B. To adopt a retail transactions and use tax 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 Revenue and Taxation Code.

C. To adopt a retail transactions and use tax that imposes a tax and provides a measure therefor 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 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 Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and, at the same time, minimize the burden of recordkeeping upon persons subject to taxation under the provisions of this article. (Ord. 2019-04 § 2, 2020; Ord. 2012-08 § 1, 2012. Formerly 3.28.180).

3.28.200 Contract with State.

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; 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. 2019-04 § 2, 2020; Ord. 2012-08 § 1, 2012. Formerly 3.28.190).

3.28.210 Transactions Tax Rate.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated area of the City at the rate of one and one-half percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City on and after the operative date of the ordinance codified in this article for a period of 20 years following the effective date of the tax and shall then be terminated. (Ord. 2019-04 § 2, 2020; Ord. 2012-08 § 1, 2012. Formerly 3.28.200).

3.28.220 Place of Sale.

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 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. 2019-04 § 2, 2020; Ord. 2012-08 § 1, 2012. Formerly 3.28.210).

3.28.230 Use Tax Rate.

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 the ordinance codified in this article for storage, use or other consumption in the City at the rate of one and one-half percent of the sales price of the property for a period of 20 years following the effective date of the tax, and shall then be terminated. The sales price shall include delivery charges when such charges are subject to sales or use tax regardless of the place to which delivery is made. (Ord. 2019-04 § 2, 2020; Ord. 2012-08 § 1, 2012. Formerly 3.28.220).

3.28.240 Adoption of Provisions of State Law.

Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted by reference and made a part of this article as if fully set forth herein. (Ord. 2019-04 § 2, 2020; Ord. 2012-08 § 1, 2012. Formerly 3.28.230).

3.28.250 Limitations on Adoption of State Law and Collection of Use Taxes.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of 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, 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 the 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 article.

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 remains subject to the tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation 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 Section 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797, or 6828 of the Revenue and Taxation Code.

B. The word “City” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition of that phrase in Section 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 exceed $500,000. For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder. (Ord. 2019-04 § 2, 2020; Ord. 2012-08 § 1, 2012. Formerly 3.28.240).

3.28.260 Permit Not Required.

If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this section. (Ord. 2019-04 § 2, 2020; Ord. 2012-08 § 1, 2012. Formerly 3.28.250).

3.28.270 Exemptions and Exclusions.

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 productions, 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 subsection, 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 Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the 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 the ordinance codified in this article.

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 the ordinance codified in this article.

5. For the purposes of subsections (B)(3) and (4) of this section, 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 article 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 Sections 6366 and 6366.1 of the Revenue and Taxation 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 the ordinance codified in this article.

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 the ordinance codified in this article.

5. For the purposes of subsections (C)(3) and (4) of this section, storage, use, or other consumption of, 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 subsection (C)(7) of this section, 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 Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the 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 article 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 Revenue and Taxation Code with respect to the person of the property the storage, use or other consumption of which is subject to the use tax. (Ord. 2019-04 § 2, 2020; Ord. 2012-08 § 1, 2012. Formerly 3.28.260).

3.28.280 Amendments.

All amendments subsequent to the effective date of this article to Part 1 of Division 2 of the Revenue and Taxation 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 Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this article; provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this article. (Ord. 2019-04 § 2, 2020; Ord. 2012-08 § 1, 2012. Formerly 3.28.270).

3.28.290 Enjoining Collection Forbidden.

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 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. (Ord. 2019-04 § 2, 2020; Ord. 2012-08 § 1, 2012. Formerly 3.28.280).

3.28.300 Annual Audit and Public Report.

Annually the City Council retains an independent auditor to conduct an audit of and provide audited financial statements for all of the City’s financial activities. The auditor shall include an accounting of the revenue received from the tax and expenditures thereof in the audited financial statements. The auditor’s report shall be presented to the Council and made available to the public. Additionally, the City Administrator shall annually prepare and present to the Council and the public a report in conjunction with the audit that reviews the status and performance of the programs and services funded wholly or partially with proceeds of the tax. (Ord. 2019-04 § 2, 2020; Ord. 2012-08 § 1, 2012. Formerly 3.28.290).

3.28.310 Termination Date.

The authority to levy the taxes imposed by this article shall expire 20 years from the operative date, unless extended by the voters. (Ord. 2019-04 § 2, 2020. Formerly 3.28.320).