Chapter 3.08 SALES AND USE TAX

The City Council declares that the ordinance codified herein 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 Cal. Revenue and Taxation Code Part 1.5 of Division 2;

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 Cal. Revenue and Taxation Code Part 1.5 of Division 2;

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; and

D. To adopt a sales and use tax ordinance which can be administered in a manner that will be, to the degree possible, consistent with the provisions of Cal. Revenue and Taxation Code Part 1.5 of Division 2, 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 chapter.

(Ord. 433, § 4, passed -- 1973)

3.08.050 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 shall not have 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 execution of such a contract rather than the first day of the first calendar quarter following the adoption of the ordinance codified herein.

(Ord. 433, § 5, passed -- 1973)

3.08.060 SALES TAX.

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 § 3.08.020 of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in this City on and after the operative date.

(Ord. 433, § 6, passed -- 1973)

3.08.070 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 or her agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from the sales shall include delivery charges, when the 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 State Board of Equalization.

(Ord. 433, § 7, passed -- 1973)

3.08.080 USE TAX.

A. 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 the operative date for storage, use, or other consumption in this City at the rate stated in § 3.08.020 of the sales price of the property.

B. The sales price shall include delivery charges when the charges are subject to state sales or use tax regardless of the place to which delivery is made.

(Ord. 433, § 8, passed -- 1973)

3.08.090 ADOPTION OF PROVISIONS OF STATE LAW.

Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Cal. Revenue and Taxation Code Part 1.5 of Division 2, all of the provisions of Cal. Revenue and Taxation Code Part 1 of Division 2 are adopted and made a part of this chapter as though fully set forth herein.

(Ord. 433, § 9, passed -- 1973)

3.08.100 LIMITATIONS ON ADOPTION OF STATE LAW.

In adopting the provisions of Cal. Revenue and Taxation Code Part 1 of Division 2, 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 the sales, storage, use, or other consumption remain subject to tax by the state under the provisions of Cal. Revenue and Taxation Code Part 1 of Division 2, 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 Cal. Revenue and Taxation Code §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797, or 6828; and the substitution shall not be made for the word “state” in the phrase “retailer engaged in business in this state” in Cal. Revenue and Taxation Code § 6203 or in the definition of that phrase in Cal. Revenue and Taxation Code § 6203.

(Ord. 433, § 10, passed -- 1973)

3.08.110 PERMIT NOT REQUIRED.

If a seller’s permit has been issued to a retailer under Cal. Revenue and Taxation Code § 6067, an additional seller’s permit shall not be required by this chapter.

(Ord. 433, § 11, passed -- 1973)

3.08.120 EXCLUSIONS AND EXEMPTIONS.

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 Cal. Revenue and Taxation Code Part 1.5 of Division 2 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 the 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 Cal. Revenue and Taxation Code §§ 6366 and 6366.1 the storage, use, or other consumption of tangible personal property purchased by operators of aircraft and used or consumed by the operators directly and exclusively in the use of the 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. 433, § 12, passed -- 1973; Am. Ord. 619, § 1, passed -- 1984)

3.08.124 ALTERNATIVE EXCLUSIONS AND EXEMPTIONS.

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 the vessels for commercial purposes.

D. The storage, use, or other consumption of tangible personal property purchased by operators of waterborne vessels and used or consumed by the operators directly and exclusively in the carriage of persons or property of the vessels for commercial purposes 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 the 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 Cal. Revenue and Taxation Code §§ 6366 and 6366.1, the storage, use, or other consumption of tangible personal property purchased by operators of aircraft and used or consumed by the operators directly and exclusively in the use of the 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. 619, § 2, passed -- 1984)

3.08.126 OPERABILITY OF §§ 3.08.120 AND 3.08.124.

A. Section 3.08.120 shall be operative 1-1-1984.

B. Section 3.08.124 shall be operative on the operative date of any act of the Legislature of the State of California which amends Cal. Revenue and Taxation Code § 7202 or which repeals and reenacts Cal. Revenue and Taxation Code § 7202 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 § 7202 as those subdivisions read on 10-1-1983.

(Ord. 619, §§ 3, 4, passed -- 1984)

3.08.130 STATE SALES OR USE TAX.

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

(Ord. 433, § 13(A), passed -- 1973)

3.08.140 SALE OF TANGIBLE PERSONAL PROPERTY ON WHICH GROSS RECEIPTS ARE TAXED.

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 Cal. Revenue and Taxation Code Part 1.5 of Division 2 by any City and county, county or City in this state shall be exempt from the tax due under this chapter.

(Ord. 433, § 13(B), passed -- 1973)

3.08.150 SALE OF TANGIBLE PERSONAL PROPERTY TO OPERATORS OF WATERBORNE VESSELS.

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 the vessels for commercial purposes.

(Ord. 433, § 13(C)), passed -- 1973)

3.08.160 USE OF TANGIBLE PERSONAL PROPERTY BY OPERATORS OF WATERBORNE VESSELS.

The storage, use, or other consumption of tangible personal property purchased by operators of waterborne vessels and used or consumed by the operators directly and exclusively in the carriage of persons or property of the vessels for commercial purposes is exempted from the use tax.

(Ord. 433, § 13(D), passed -- 1973)

3.08.170 SALE OF TANGIBLE PERSONAL PROPERTY TO OPERATORS OF AIRCRAFT.

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 the 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. 433, § 13(E), passed -- 1973)

3.08.180 UNITED STATES AND FOREIGN GOVERNMENTS.

In addition to the exemptions provided in Cal. Revenue and Taxation Code §§ 6366 and 6366.1, the storage, use, or other consumption of tangible personal property purchased by operators of aircraft and used or consumed by the operators directly and exclusively in the use of the 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. 433, § 13(F), passed -- 1973)

3.08.190 APPLICATION OF §§ 3.08.130 THROUGH 3.08.180.

Sections 3.08.130 through 3.08.180 shall become operative on January 1 of the year following the year in which the State Board of Equalization adopts an assessment ratio for state-assessed property which is identical to the ratio which is required for local assessments by Cal. Revenue and Taxation Code § 401, at which time § 3.08.120 shall become inoperative.

(Ord. 433, § 14(A), passed -- 1973)

3.08.200 SECTIONS 3.08.130 THROUGH 3.08.180 INOPERATIVE - RESULT.

In the event that §§ 3.08.130 through 3.08.180 become operative and the State Board of Equalization subsequently adopts an assessment ratio for the state-assessed property which is higher than the ratio which is required for local assessments by Cal. Revenue and Taxation Code § 401, § 3.08.120 shall become operative on the first day of the month next following the month in which the higher ratio is adopted, at which time §§ 3.08.130 through 3.08.180 shall be inoperative until the first day of the month following the month in which the board again adopts an assessment ratio for state-assessed property which is identical to the ratio required for local assessments by Cal. Revenue and Taxation Code § 401, at which time §§ 3.08.130 through 3.08.180 shall again become operative and § 3.08.120 shall become inoperative.

(Ord. 433, § 14(B), passed -- 1973)

3.08.210 AMENDMENTS.

All subsequent amendments of the Cal. Revenue and Taxation Code which relate to the sales and use tax and which are not inconsistent with Cal. Revenue and Taxation Code Part 1.5 of Division 2 shall automatically become a part of this chapter.

(Ord. 433, § 15, passed -- 1973)

3.08.220 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 ordinance, or Cal. Revenue and Taxation Code Part 1.5 of Division 2, of any tax or any amount of tax required to be collected.

(Ord. 433, § 16, passed -- 1973)

3.08.230 VIOLATION - PENALTIES.

Any person violating any of the provisions of this chapter is guilty of a misdemeanor, and upon conviction thereof shall be punishable as provided in Chapter 1.12.

(Ord. 433, § 17, passed -- 1973)