Chapter 3.12
SALES AND USE TAX
Sections:
3.12.060 Application of provisions relating to exclusions and exemptions.
3.12.080 Enjoining collection forbidden.
3.12.090 Existing sales and use tax ordinances suspended.
3.12.010 Short title.
This chapter shall be known as the “uniform local sales and use tax law” of the city. (Prior code § 8-3.01)
3.12.020 Purpose.
The 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 law 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. To adopt a sales and use tax law which incorporates provisions identical to those of the Sales and Use Tax Law of the state insofar as these provisions are not inconsistent with the requirements and limitations contained in Part 1.5 of Division 2 of the said Revenue and Taxation Code;
C. To adopt a sales and use tax law 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 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 the California State Sales and Use Taxes; and
D. To adopt a sales and use tax law 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 said 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 chapter. (Prior code § 8-3.02)
3.12.030 Operative date.
This chapter shall become operative 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 sales and use tax law; provided, that if the city has not contracted with the State Board of Equalization, as above set forth, prior to April 1, 1956, this chapter shall not be operative until the first day of first calendar quarter following the execution of such a contract by the city and by the State Board of Equalization; and provided, further, that this chapter shall not become operative prior to the operative date of the Uniform Local Sales and Use Tax Ordinance of the county. (Prior code § 8-3.03)
3.12.040 Sales tax.
A. 1. 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 this chapter.
2. 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.
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, 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 sales taxes, are adopted and made a part of this section as though fully set forth in this chapter.
2. Wherever, and to the extent that, in Part 1 of Division 2 of said Revenue and Taxation Code, the state is named or referred to as the taxing agency, the city shall be substituted therefor. Nothing in this subsection 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 the provisions 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, 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 said 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 said 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 said Revenue and Taxation Code as adopted.
3. If a seller’s permit has been issued to a retailer pursuant to the provisions of Section 6067 of said Revenue and Taxation Code, an additional seller’s permit shall not be required by reason of the provisions of this section.
4. (Operative January 1, 1984) 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 upon a retailer or consumer; and
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 the state, the United States, or any foreign government.
4. (Operative on the operative date of any act of the Legislature of the state which amends or repeals and reenacts Section 7202 of the Revenue and Taxation Code of the state 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 subsections (7) and (8) of subsection (i) of said Section 7202 as said subsections read on October 1, 1983) 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 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 vessel for commercial purposes; and
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 the state, the United States, or any foreign government.
5. (Operative January 1, 1984) 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;
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 said Revenue and Taxation Code by any city and county, county or city in the state; and
c. In addition to the exemptions provided in Sections 6366 and 6366.1 of said 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 the state, the United States, or any foreign government.
5. (Operative on the operative date of any act of the Legislature of the State which amends or repeals and reenacts Section 7202 of the Revenue and Taxation Code of the state 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 subsections (7) and (8) of subsection (i) of said Section 7202 as said subsections read on October 1, 1983) 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;
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 said Revenue and Taxation Code by any city and county, county, or city in the 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; and
d. In addition to the exemptions provided in Sections 6366 and 6366.1 of said 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 the state, the United States, or any foreign government. (Prior code § 8-3.04)
3.12.050 Use tax.
A. 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 this chapter for the 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.
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, 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 adopted and made a part of this section as though fully set forth in this chapter.
2. Wherever, and to the extent that, in Part 1 of Division 2 of said Revenue and Taxation Code, the state is named or referred to as the taxing agency, the city shall be substituted therefor. Nothing in this subsection 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 the provisions 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, 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 said Revenue and Taxation Code, nor 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 said 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 said 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 of this code nor in the definition of that phrase in said Section 6203.
3. 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;
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 the provisions of Part 1.5 of Division 2 of said Revenue and Taxation Code by any city and county, county, or city in the state;
c. The storage or use of tangible personal property in the transportation or transmission of persons, property, or communications, or in the generation, transmission, or distribution of electricity, or in the manufacture, transmission, or distribution of gas in intrastate, interstate, or foreign commerce by public utilities which are regulated by the Public Utilities Commissions of the state; and
d. The use or consumption of property purchased by operators of common carriers and waterborne vessels to be used or consumed in the operation of such common carriers or waterborne vessels principally outside the city.
4. 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;
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 the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code of the state by any city and county, county, or city in the 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; and
d. In addition to the exemptions set forth in Sections 6366 and 6366.1 of said 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 the state, the United States, or any foreign government. (Prior code § 8-3.05)
3.12.060 Application of provisions relating to exclusions and exemptions.
A. The provisions of Sections 3.12.040B5 and 3.12.050B4 shall become operative on January 1st of the year following the year in which the State Board of Equalization adopts an assessment ratio for state-assessed property, which ratio is identical to the ratio which is required for local assessments by the provisions of Section 401 of the Revenue and Taxation Code of the state, at which time the provisions of Sections 3.12.040B4 and 3.12.050B3 shall become inoperative.
B. In the event the provisions of Sections 3.12.040B5 and 3.12.050B4 become operative, and the State Board of Equalization subsequently adopts an assessment ratio for state-assessed property, which ratio is higher than the ratio which is required for local assessments by the provisions of said Section 401 of the Revenue and Taxation Code, the provisions of Sections 3.12.040B4 and 3.12.050B3 shall become operative on the first day of the month following the month in which such high ratio is adopted, at which time the provisions of Sections 3.12.040B5 and 3.12.050B4 shall become inoperative until the first day of the month following the month in which said board again adopts an assessment ratio for state-assessed property, which ratio is identical to the ratio required for local assessments by the provisions of said Section 401, at which time the provisions of Sections 3.12.040B5 and 3.12.050B4 shall again become operative, and the provisions of Sections 3.12.040B4 and 3.12.050B3 shall become inoperative. (Prior code § 8-3.05.1)
3.12.070 Amendments.
All amendments of the Revenue and Taxation Code of the state enacted subsequent to the effective date of this chapter, which amendments relate to the sales and use tax and which are not inconsistent with the provisions of Part 1.5 of Division 2 of said Revenue and Taxation Code, shall automatically become a part of this chapter. (Prior code § 8-3.06)
3.12.080 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 chapter, or Part 1.5 of Division 2 of the Revenue and Taxation Code of the state, of any tax or any amount of tax required to be collected. (Prior code § 8-3.07)
3.12.090 Existing sales and use tax ordinances suspended.
At the time this chapter goes into operation, the provisions of Ordinances 342, 346, 351, 352, 379 and 380 shall be suspended and shall not again be of any force and 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 imposed; provided, however, that it for any reason it is determined that the city is without power to adopt this chapter, 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 chapter, the provisions of Ordinances 342, 346, 351, 352, 379 and 380 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 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 chapter, the provisions of Ordinances 342, 346, 351, 352, 379 and 380 shall again be in full force and effect at the rate of one percent. Nothing in this chapter 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 Ordinances 342, 346, 351, 352, 379 and 380 in force and effect prior to and including March 31, 1956. (Prior code § 8-3.08)