Chapter 3.04
SALES AND USE TAX
Sections:
3.04.010 Statutory authority.
3.04.020 Purpose of provisions.
3.04.030 Portions of Revenue and Taxation Code adopted by reference.
3.04.040 Limitations on adoption of state law.
3.04.050 Administration and operation – Contract with state.
3.04.060 Rate of tax.
3.04.070 Sales tax imposed.
3.04.080 Place where sales consummated.
3.04.090 Use tax.
3.04.100 Seller’s permit not required when.
3.04.110 Application of provisions relating to exclusions and exemptions.
3.04.120 Exclusions and exemptions.
3.04.130 Exclusions and exemptions.
3.04.140 Enjoining collection prohibited.
3.04.150 Alternating applicability of provisions.
3.04.010 Statutory authority.
This chapter is adopted pursuant to Part 1.5, Division 2, of the Revenue and Taxation code of the state of California, and shall be known as the “uniform local sales and use tax ordinance.” 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. (1960 code § 21.1.1)
3.04.020 Purpose of provisions.
The City Council hereby declares that the ordinance codified in 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, 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 recordkeeping upon persons subject to taxation under the provisions of this chapter. (Ord. 2065 § 1(A), 2018; 1960 code § 21.1.2)
3.04.030 Portions of Revenue and Taxation Code adopted by reference.
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 hereby adopted and made a part of this chapter as though fully set forth herein. (1960 code § 21.6)
3.04.040 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, 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 said 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. 2065 § 1(A), 2018; 1960 code § 21.6.1)
3.04.050 Administration and operation – 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 the sales and use tax ordinance codified in this chapter; provided, that if the 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 in this chapter. (Ord. 2065 § 1(A), 2018; 1960 code § 21.2)
3.04.060 Rate of tax.
The rate of sales tax and use tax imposed by this chapter shall be one percent. (Ord. 1184 § 1, 1985; 1960 code § 21.1.3)
3.04.070 Sales tax imposed.
For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the City at the rate stated in LMC 3.04.060 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. 2065 § 1(A), 2018; 1960 code § 21.3)
3.04.080 Place where sales consummated.
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. (1960 code § 21.4)
3.04.090 Use tax.
An excise tax is hereby 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 LMC 3.04.060 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. 2065 § 1(A), 2018; 1960 code § 21.5)
3.04.100 Seller’s permit not required when.
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. (1960 code § 21.6.2)
3.04.110 Application of provisions relating to exclusions and exemptions.
A. LMC 3.04.120 shall be operative January 1, 1984.
B. LMC 3.04.130 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. 1155 § 1, 1983; 1960 code § 21.7)
3.04.120 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 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 Section 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. 2065 § 1(A), 2018; Ord. 1155 § 2, 1983; 1960 code § 21.7.1)
3.04.130 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 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 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.
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 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 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. 2065 § 1(A), 2018; Ord. 1155 § 3, 1983; 1960 code § 21.7.2)
3.04.140 Enjoining collection prohibited.
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. 2065 § 1(A), 2018; 1960 code § 21.8)
3.04.150 Alternating applicability of provisions.
At the time the provisions codified in this chapter go into operation, the provisions of Ordinances 271, 274, 282, 283, 414 and 467 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 article, the provisions of Ordinances 271, 274, 282, 283, 414 and 467 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 271, 274, 282, 283, 414 and 467 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 and use tax accrued and owing by the reason of the provisions of Ordinances 271, 274, 282, 283, 414 and 467 in force and effect prior to and including March 31, 1956. (Ord. 2065 § 1(A), 2018; 1960 code § 21.8.1)