Chapter 3.25
SALES AND USE TAX
Sections:
Article I. General Provisions
3.25.040 Enjoining collection forbidden.
3.25.050 Existing sales and use tax ordinances suspended.
Article II. Sales Tax
3.25.080 Application of Revenue and Taxation Code.
Article III. Use Tax
3.25.130 Application of Revenue and Taxation Code.
Article IV. Exclusions and Exemptions – Application
3.25.150 Application of provisions relating to exclusions and exemptions.
Article V. Declaration of Policy
3.25.170 Disposition of proceeds.
Article I. General Provisions
3.25.010 Short title.
This chapter shall be known as the “Uniform Local Sales and Use Tax Ordinance” of the city. (Ord. 172, § 1; 1976 Code § 3-5.101; 1966 Code § 2750).
3.25.020 Purpose.
The city council of the city 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 of the state of California;
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 said Revenue and Taxation Code;
C. To adopt a sales and use tax ordinance which imposes a ninety-five-one-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 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 said 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. 172, § 2, Amended by Ord. 187, § 1; 1976 Code § 3-5.102; 1966 Code § 2751).
3.25.030 Amendments.
All amendments of the said Revenue and Taxation Code enacted subsequent to the effective date of the ordinance codified in this chapter which relate to the sales and use tax and which are not inconsistent with Part 1.5 of Division 2 of the said Revenue and Taxation Code shall automatically become a part of this chapter. (Ord. 172, § 6; 1976 Code § 3-5.103; 1966 Code § 2752).
3.25.040 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. 172, § 7; 1976 Code § 3-5.104; 1966 Code § 2753).
3.25.050 Existing sales and use tax ordinances suspended.
At the time this chapter goes into operation the provisions of Ordinances Nos. 154 and 155 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 imposed by this chapter; 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. 154 and 155 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 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. 154 and 155 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 Nos. 154 and 155 in force and effect prior to and including December 31, 1960. (Ord. 172, § 8; 1976 Code § 3-5.105; 1966 Code § 2754).
Article II. Sales Tax
3.25.060 General 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 of ninety-five one-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. (Ord. 172, § 4; 1976 Code § 3-5.201; 1966 Code § 2760).
3.25.070 Sales included.
For the purpose 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 Board of Equalization. (Ord. 172, § 4, Amended by Ord. 187, § 2; 1976 Code § 3-5.202; 1966 Code § 2761).
3.25.080 Application of Revenue and Taxation Code.
A. Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the said 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 this section as though fully set forth herein.
B. Wherever, and to the extent that, in Part 1 of Division 2 of the 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 of Millbrae 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, 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 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. (Ord. 172, § 4; 1976 Code § 3-5.203; 1966 Code § 2762).
3.25.090 Seller’s permit.
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 reason of this section. (Ord. 172, § 4, Amended by Ord. 324, § 1; 1976 Code § 3-5.204; 1966 Code § 2763).
3.25.100 Exclusions.
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 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. 172, § 4, Amended by Ord. 187, §§ 3, 4 and Ord. 477, § 1; 1976 Code § 3-5.205; 1966 Code § 2764).
3.25.110 Exclusions.
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. 324, § 2, Amended by Ord. 477, § 3; 1976 Code § 3-5.206; 1966 Code § 2765).
Article III. Use Tax
3.25.120 Excise tax.
An excise tax is imposed on the storage, use or other consumption in the city of tangible personal property purchased from any retailer for storage, use or other consumption in the city at the rate of ninety-five one-hundredths 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. (Ord. 172, § 5; 1976 Code § 3-5.301; 1966 Code § 2770).
3.25.130 Application of Revenue and Taxation Code.
A. 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 this article as though fully set forth in this section.
B. Wherever, and to the extent that, in Part 1 of Division 2 of the said Revenue and Taxation Code the state is named or referred to as the taxing agency, the name of this city shall be substituted therefor. Nothing in this subsection shall be deemed to require the substitution of the name of this 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 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, 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 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, 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 nor in the definition of that phrase in Section 6203.
C. There shall be exempt from the tax due under this section:
1. The amount of any sales or use tax imposed by the state upon a retailer or consumer.
2. 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.
3. 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. 172, § 5, Amended by Ord. 187, §§ 5, 6 and Ord. 477, § 2; 1976 Code § 3-5.302; 1966 Code § 2771).
3.25.140 Exemptions.
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 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. 324, § 3, Amended by Ord. 477, § 4; 1976 Code § 3-5.303; 1966 Code § 2772).
Article IV. Exclusions and Exemptions – Application
3.25.150 Application of provisions relating to exclusions and exemptions.
A. MMC 3.25.100 and 3.25.130(C) shall be operative January 1, 1984.
B. MMC 3.25.110 and 3.25.140 shall be operative on the operative date of any act of the Legislature of the State of California which amends or 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 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983. (Ord. 324, § 4, Amended by Ord. 477, §§ 5, 6; 1976 Code § 3-5.401; 1966 Code § 2773).
Article V. Declaration of Policy
3.25.160 Purpose.
The city council of the city desires to declare a policy with respect to the disposition of net receipts from the city sales and use tax. (Ord. 173, § 1; 1976 Code § 3-5.501; 1966 Code § 2775).
3.25.170 Disposition of proceeds.
All moneys collected by the city under and pursuant to the provisions of this chapter shall be deposited and paid into the general fund of the city. (Ord. 173, § 2, Amended by Ord. 314, § 1 and Ord. 350, § 3; 1976 Code § 3-5.502; 1966 Code § 2776).