Chapter 3.12 SALES AND USE TAX

The city council declares that this chapter is adopted to achieve the following among other purposes, and directs that the provisions hereof 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;

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 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 record keeping upon persons subject to the taxation under the provisions of this chapter. (Ord. 1242 § 1, 1973; 1964 Code § 25.28.)

3.12.050 Contract with state.

Prior to the operative date this 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 chapter; provided, that if this city has contracted with the State Board of Equalization 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 adoption of the ordinance codified in CMC 3.12.010 through 3.12.150. (Ord. 1242 § 1, 1973; 1964 Code § 25.29.)

3.12.060 Sales tax imposed.

For the privilege of selling tangible personal property at retail a tax is imposed upon all retailers in the city at the rate stated in CMC 3.12.020 of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in this city on and after January 1, 1974. (Ord. 1242 § 1, 1973; 1964 Code § 25.30A.)

3.12.070 Place of sale.

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 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 State Board of Equalization. (Ord. 1242 § 1, 1973; 1964 Code § 25.30B.)

3.12.080 Use tax imposed.

An excise tax is imposed on the storage, use or other consumption in this city of tangible personal property purchased from any retailer on and after January 1, 1974, for storage, use or other consumption in this city at the rate stated in CMC 3.12.020 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. 1242 § 1, 1973; 1964 Code § 25.30C.)

3.12.090 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 1.5 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 of Division 2 of the Revenue and Taxation Code are adopted and made a part of this chapter as though fully set forth herein. (Ord. 1242 § 1, 1973; 1964 Code § 25.31A.)

3.12.100 Limitations on adoption of state law.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, wherever the state of California is named or referred to as the taxing agency, the name of this city shall be substituted therefor. The substitution, however, shall not be made 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; the substitution shall not be made 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; the substitution shall not be 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 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 remain 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 sales, 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; the substitution shall not be made in Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code; and the substitution shall not be made for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 or in the definition of that phrase in Section 6203. (Ord. 1242 § 1, 1973; 1964 Code § 25.31B.)

3.12.110 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 seller’s permit shall not be required by this chapter. (Ord. 1242 § 1, 1972; 1964 Code § 25.31C.)

3.12.120 Exclusions from gross receipts.

There shall be excluded from the measure of tax:

A. The amount subject to tax shall not include 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 have been subject to 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 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 this state, the United States or any foreign government.

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 is exempted from the use tax. (Ord. 1555 § 1, 1983; Ord. 1242 § 1, 1973; 1964 Code § 25.32A.)

3.12.130 Exclusions and exemptions.

There shall be excluded from the measure of tax:

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

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 purpose.

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 of such vessels for commercial purpose 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 this state, the United States or any foreign government.

F. 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 is exempted from the use tax. (Ord. 1555 § 1, 1983; Ord. 1242 § 1, 1973; 1964 Code § 25.32B.)

3.12.135 Application of provisions relating to exclusions and exemptions.

CMC 3.12.130 shall be operative on the operative date of any act of the Legislature of the State of California which amends Section 7202 of the Revenue and Taxation Code or which 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, as those subdivisions read on October 1, 1983. (Ord. 1555 § 1, 1983; Ord. 1242 § 1, 1973; 1964 Code § 25.32C.)

3.12.136 Credit for taxes due redevelopment agency.

Any person subject to a sales and use tax under this chapter shall be entitled to a credit against payment due under an ordinance of the Covina redevelopment agency which imposes a sales and use tax pursuant to Section 7202.6 of the California Revenue and Taxation Code. (Ord. 93-1757 § 1, 1993.)

3.12.140 Amendments.

All subsequent amendments of the Revenue and Taxation Code 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. 1242 § 1, 1973; 1964 Code § 25.33A.)

3.12.145 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 this city, or against any officer of the state or this 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. 1242 § 1, 1973; 1964 Code § 25.33B.)

3.12.150 Penalties.

Any person violating any of the provisions of CMC 3.12.010 through 3.12.140 shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable as provided in Chapter 1.16 CMC. (Ord. 1242 § 1, 1973; 1964 Code § 25.33C.)

Article II. Covina Redevelopment Agency Sales and Use Tax

3.12.160 Title of article.

This article shall be known as the Covina redevelopment agency of the city of Covina sales and use tax ordinance. (Ord. CRA 1 § 1, 1994.)

3.12.170 Agency sales tax.

A.1. For the privilege of selling tangible personal property at retail, a tax is hereby imposed by the Covina redevelopment agency of the city upon all retailers located within the area described more fully in Exhibit A attached to the original ordinance and by this reference incorporated herein (the “redevelopment project”) at the rate of one percent of the gross receipts of the retailer from the sale of all tangible personal property sold at retail within the redevelopment project on and after the operative date of this article.

2. 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 of California 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 State Board of Equalization.

B.1. 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 of the state (the “Code”), all of the provisions of Part 1 (commencing with the Section 6001) of Division 2 of the Code, as amended and in force and effect on August 17, 1993, applicable to sales taxes are hereby adopted and made a part of this section as though fully set forth herein.

2. Wherever, and to the extent that, in Part 1 (commencing with Section 6001) of Division 2 of the Code, the state is named or referred to as the taxing agency, the name “Covina Redevelopment Agency of the City of Covina” shall be substituted therefor. Nothing in this subsection shall be deemed to require substitution of the name “Covina Redevelopment Agency of the City of Covina” for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 of the Code nor in the definition of that phrase in Section 6203 of the Code.

3. If a seller’s permit has been issued to a retailer under Section 6067 of the Code, an additional seller’s permit shall not be required by reason of subsection (B)(2) of this section.

4. There shall be excluded from the gross receipts by which the tax due under this section is measured, the amount of any sales or use tax imposed by the state upon a retailer or consumer.

5. There shall be exempt from the tax due under this section the gross receipts from the sale of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the redevelopment project and the city in which the sale is made and directly and exclusively in use of such aircraft as common carriers of persons or property under the authority of the laws of the state, the United States, or any foreign government. (Ord. CRA 1 § 1, 1994.)

3.12.180 Agency use tax.

A. An excise tax is hereby imposed by the agency on the storage, use or other consumption in the redevelopment project of tangible personal property purchased from any retailer on or after August 17, 1993, for storage, use or other consumption in the redevelopment project 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.

B.1. Except as hereinafter provided and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Code, as amended and in force and effect on August 17, 1993, applicable to use taxes, are hereby adopted and made a part of this section as though fully set forth herein.

3. There shall be excluded from the amount subject to tax under this section any sales or use tax imposed by the state upon a retailer or consumer.

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

a. 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 or 1.5 of Division 2 of the Code by any city and county, county, city or redevelopment agency in the state; and

b. In addition to the exemptions provided in Sections 6366 and 6366.1 of the 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 the state, the United States, or any foreign government. (Ord. CRA 1 § 1, 1994.)

3.12.220 Contract with the State Board of Equalization.

Prior to the operative date of this article, the secretary of the agency shall cause the agency to contract with the State Board of Equalization to perform all functions incident to the administration and operation of this article; provided, however, that if the agency shall not have contracted with the State Board of Equalization prior to 31 days before the operative date of this article, this article shall not become operative until 31 days following the execution of such a contract by and between the agency and the State Board of Equalization, shall continue in effect so long as the county of Los Angeles and the city of Covina shall have operative sales and use tax ordinances enacted pursuant to Part 1.5 of Division 2 of the Code. (Ord. CRA 1 § 1, 1994.)

3.12.230 Amendments to the Revenue and Taxation Code.

All amendments subsequent to the effective date of the enactment of Part 1 (commencing with Section 6001) of Division 2 of the Code relating to sales and use tax and not inconsistent with Part 1.5 of Division 2 of the Code shall automatically become a part of this article. (Ord. CRA 1 § 1, 1994.)

3.12.240 Consideration of the California Constitution.

Prior to enacting this article, the agency considered the applicability of Section 4 of Article XIII A of, and Article XIII B of, the California Constitution to this article and hereby finds and determines that this article does not violate any of the provisions of the California Constitution. (Ord. CRA 1 § 1, 1994.)

For statutory provisions regarding state sales and use taxes, see Revenue and Taxation Code § 6001, et seq.; for provisions regarding the Uniform Local Sales and Use Tax Act, see Revenue and Taxation Code § 7200; for provisions authorizing cities to impose sales and use taxes, see Government Code § 37101.