Chapter 3.08
SALES AND USE TAX*
Sections:
3.08.030 Operative date--Contract with state.
3.08.040 Sales tax--Imposition.
3.08.060 Sales tax--Adoption of provisions of state law.
3.08.070 Sales tax--Limitation on adoption of state law.
3.08.090 Sales tax--Exclusions and exemptions.
3.08.100 Sales tax--Exclusions and exemptions.
3.08.120 Use tax--Adoption of provisions of state law.
3.08.130 Use tax--Limitation on adoption of state law.
3.08.140 Use tax--Exclusions and exemptions.
3.08.150 Use tax--Exclusions and exemptions.
3.08.170 Application of provisions relating to exclusions and exemptions.
3.08.180 Enjoining collection forbidden.
3.08.190 Suspension of existing regulations.
3.08.200 Disposition of proceeds.
* For the statutory provisions regarding the Uniform Local Sales and Use Tax Act, see Rev. and Tax. Code §7200 et seq. For statutory provisions authorizing cities to impose sales and use taxes, see Gov. Code §37101.
3.08.010 Short title.
This chapter shall be known as the “Uniform Local Sales and Use Tax Ordinance” of the city. (Ord. 15-60 §1, 1960).
3.08.020 Purpose.
The city council declares that this chapter is adopted to achieve the following, among other purposes and directs that the provisions hereto 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;
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 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 ninety-five hundredths of 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 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;
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 taxation under the provisions of this chapter;
E. To adopt a sales and use tax ordinance which can be administered in a manner that will exclude the receipts of particular sales from the measure of the sales tax imposed by this city which have been included in the measure of the sales tax imposed by any other city and county, county other than the county in which this city is located, or city in this state, and avoid imposing a use tax on the storage, use or other consumption on tangible personal property in this city when the gross receipts from the sale of, or the use of that property has been subject to a sales or use tax by any other city and county, county other than the county in which this city is located, or city in this state, pursuant to a sales and use tax ordinance enacted under the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code. (Ord. 15-60 §2, 1960).
3.08.030 Operative date--Contract with state.
This chapter shall become operative on January 1, 1961, and prior thereto 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 ordinance; provided, that if this city has not contracted with the State Board of Equalization, as above set forth, prior to January 1, 1961, 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 this chapter shall not become operative prior to the operative date of the Uniform Local Sales and Use Tax Ordinance of the county of San Mateo. (Ord. 15-60 §3, 1960).
3.08.040 Sales tax--Imposition.
For the privilege of selling tangible personal property at retail a tax is imposed upon all retailers in the city at the rate of ninety-five hundredths 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. (Ord. 15-60 §4(a)(1), 1960).
3.08.050 Place of sale.
For the purpose of this chapter, all retail sales shall be presumed to have been 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. Delivery charges shall be included in the gross receipts by which the tax is measured, regardless of the place to which delivery is made, when such charges are included in the measure of the sales or use tax imposed by the state. 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 retail sales are consummated shall be as determined under the rules and regulations prescribed and adopted by the Board of Equalization. (Ord. 15-60 §4(a)(2), 1960).
3.08.060 Sales tax--Adoption of provisions of state law.
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 January 1, 1961, applicable to sales taxes, are adopted and made a part of Sections 3.08.040 through 3.08.100 as though fully set forth herein. (Ord. 15-60 §4(b)(1), 1960).
3.08.070 Sales tax--Limitation on adoption of state law.
Wherever, and to the extent that, in Part 1 of Division 2 of the Revenue and Taxation Code of the state of California is named or referred to as the taxing agency, the city of Half Moon Bay shall be substituted therefor. Nothing in this subdivision shall require the substitution of the name of the city of Half Moon Bay 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. 15-60 §4 (b) (2), 1960).
3.08.080 Permit not required.
If a seller’s permit has been issued to a retailer under Section 6067 of the said Revenue and Taxation Code, an additional seller’s permit shall not be required by reason of Sections 3.08.040 through 3.08.100. (Ord. 1-74 §1, 1974: Ord. 9-73 §1, 1973: Ord. 15-60 §4(b)(3), 1960).
3.08.090 Sales tax--Exclusions and 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 upon a retailer or consumer;
B. Receipts from the sale of tangible personal property upon which a sales or use tax has become due by reason of the same transaction to any other city and county, county other than the county in which this city is located, or city in this state under a sales or use tax ordinance enacted by that city and county, county other than the county in which this city is located, or city in this state in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code;
C. Receipts from sales to operators of common carrier and waterborne vessels of property to be used or consumed in the operation of such common carrier or waterborne vessels principally outside of this city. (Ord. 7-84 §2, 1984).
3.08.100 Sales tax--Exclusions and 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 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. (Ord. 7-84 §3, 1984).
3.08.110 Use tax--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 this chapter, for storage, use or other consumption in the city at the rate of ninety-five hundredths of one percent of the sales price of the property. The sales price shall include delivery charges when such charges are subject to the state sales or use tax regardless of the place to which delivery is made. (Ord. 15-60 §5(a), 1960).
3.08.120 Use tax--Adoption of provisions of state law.
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 January 1, 1961, applicable to use taxes, are adopted and made a part of Sections 3.08.110 through 3.08.150 as though fully set forth herein. (Ord. 15-60 §5(b)(1), 1960).
3.08.130 Use tax--Limitation on adoption of state law.
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 city of Half Moon Bay shall be substituted therefor. Nothing in this section shall require the substitution of the name of the city of Half Moon Bay 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 function 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 said Revenue and Taxation Code as adopted. (Ord. 15-60 §5(b)(2), 1960).
3.08.140 Use tax--Exclusions and exemptions.
There shall be exempt from the tax due under Sections 3.08.110 through 3.08.150:
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 or the cost of which has been subject to sales or use tax under a sales or use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code by any other city and county, county other than the county in which this city is located, or city in this 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 Commission of the state;
D. The use or consumption of property purchased by operators of common carrier and waterborne vessels to be used or consumed in the operation of such common carriers or waterborne vessels principally outside the city. (Ord. 7-84 §4, 1984).
3.08.150 Use tax--Exclusions and exemptions.
There shall be exempt from the tax due under Sections 3.08.110 through 3.08.140:
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 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. (Ord. 7-84 §5, 1984).
3.08.160 Amendments.
All amendments of the Revenue and Taxation Code enacted subsequent to the effective date of 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. 15-60 §6, 1960).
3.08.170 Application of provisions relating to exclusions and exemptions.
A. Sections 3.08.100 and 3.08.150 of this chapter 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 is identical to the ratio which is required for local assessments by Section 401 of the Revenue and Taxation Code, at which time Sections 3.08.090 and 3.08.140 of this chapter shall become inoperative.
B. In the event that Sections 3.08.100 and 3.08.150 of this chapter become operative and the State Board of Equalization subsequently adopts an assessment ratio for state-assessed property which is higher than the ratio which is required for local assessments by Section 401 of the Revenue and Taxation Code, Sections 3.08.090 and 3.08.140 of this chapter shall become operative on the first day of the month following the month in which such higher ratio is adopted, at which time Sections 3.08.100 and 3.08.150 of this chapter shall become 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 Section 401 of the Revenue and Taxation Code, at which time Sections 3.08.100 and 3.08.150 shall again become operative and Sections 3.08.090 and 3.08.140 shall become inoperative. (Ord. 7-84 §6, 1984).
3.08.180 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. 15-60 §7, 1960).
3.08.190 Suspension of existing regulations.
At the time this chapter goes into operation, the provisions of Ordinances Nos. 9-60 and 10-60 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 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 Nos. 9-60 and 10-60 shall not be deemed to have been in full force and effect at the rate of one percent continuously from and after January 1, 1961. 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 Nos. 9-60 and 10-60 shall again be in full force and effect at the rate of one percent. (Ord. 15-60 §8, 1960).
3.08.200 Disposition of proceeds.
All moneys collected under and pursuant to the provisions of this chapter shall be deposited and paid into the general fund of the city. (Ord. 15-60 §9, 1960).