Chapter 3.45
TRANSACTIONS AND USE TAX – LIBRARIES
Sections:
3.45.050 Transactions tax rate.
3.45.080 Adoption of provisions of State law.
3.45.090 Limitations on adoption of State law and collection of use taxes.
3.45.110 Exemptions and exclusions.
3.45.130 Enjoining collection forbidden.
3.45.160 Citizens’ Advisory Committee.
3.45.170 Certification – Publication.
3.45.010 Title.
The ordinance codified in this chapter shall be known as the “City of Mt. Shasta transactions and use tax.” The City of Mt. Shasta hereinafter shall be called “City.” This chapter shall be applicable in the incorporated territory of the City. (Ord. CCO-11-03 § 1, 2011)
3.45.020 Operative date.
“Operative date” means the first day of the first calendar quarter commencing more than 110 days after the adoption of the ordinance codified in this chapter, and approval by the voters on June 7, 2011. (Ord. CCO-11-03 § 1, 2011)
3.45.030 Purpose.
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 impose a retail transactions and use tax in accordance with the provisions of Cal. Rev. and Tax. Code Division 2, Part 1.6 (commencing with Section 7251) and Cal. Rev. and Tax. Code Division 2, Part 1.7, § 7285.91, which authorizes the City to adopt the tax ordinance codified in this chapter which shall be operative if two-thirds of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. Revenues from said tax shall be used for the purpose of providing funding for the operation, maintenance, and improvement of the Mt. Shasta Branch Library.
(B) To adopt a retail transactions and use tax ordinance that 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. Rev. and Tax. Code Division 2, Part 1.6.
(C) To adopt a retail transactions and use tax ordinance that 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 retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Cal. Rev. and Tax. Code Division 2, Part 1.6, minimize the cost of collecting the transactions 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. CCO-11-03 § 1, 2011)
3.45.040 Contract with State.
Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax 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. (Ord. CCO-11-03 § 1, 2011)
3.45.050 Transactions tax rate.
For the privilege of selling tangible personal property at retail, a tax is imposed upon all retailers in the incorporated territory of the City at the rate of 0.25 percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this chapter. (Ord. CCO-11-03 § 1, 2011)
3.45.060 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 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. (Ord. CCO-11-03 § 1, 2011)
3.45.070 Use tax rate.
An excise tax is imposed on the storage, use, or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of the ordinance codified in this chapter for storage, use, or other consumption in said territory at the rate of 0.25 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. CCO-11-03 § 1, 2011)
3.45.080 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. Rev. and Tax. Code Division 2, Part 1.6, all of the provisions of Cal. Rev. and Tax. Code Division 2, Part 1 (commencing with Section 6001) are adopted and made a part of this chapter as though fully set forth herein. (Ord. CCO-11-03 § 1, 2011)
3.45.090 Limitations on adoption of State law and collection of use taxes.
In adopting the provisions of Cal. Rev. and Tax. Code Division 2, Part 1:
(A) Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:
(1) The word “State” is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California;
(2) The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this chapter;
(3) 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:
(a) 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 Cal. Rev. and Tax. Code Division 2, Part 1; or
(b) 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 provision of that code;
(4) In Cal. Rev. and Tax. Code § 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828.
(B) The word “City” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Cal. Rev. and Tax. Code § 6203 and in the definition of that phrase in Cal. Rev. and Tax. Code § 6203. (Ord. CCO-11-03 § 1, 2011)
3.45.100 Permit not required.
If a seller’s permit has been issued to a retailer under Cal. Rev. and Tax. Code § 6067, an additional transactor’s permit shall not be required by this chapter. (Ord. CCO-11-03 § 1, 2011)
3.45.110 Exemptions and exclusions.
(A) There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any State-administered transactions or use tax.
(B) There are exempted from the computation of the amount of transactions tax the gross receipts from:
(1) Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county 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.
(2) Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this subsection, delivery to a point outside the City shall be satisfied:
(a) With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Cal. Veh. Code Division 3, Chapter 1 (commencing with Section 4000), aircraft licensed in compliance with Cal. Pub. Util. Code § 21411, and undocumented vessels registered under Cal. Veh. Code Division 3.5 (commencing with Section 9840) by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
(b) With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.
(3) The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter.
(4) A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this chapter.
(5) For the purposes of subsections (B)(3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
(C) There are exempted from the use tax imposed by this chapter the storage, use or other consumption in this City of tangible personal property:
(1) The gross receipts from the sale of which have been subject to a transactions tax under any State-administered transactions and use tax ordinance.
(2) Other than fuel or petroleum products 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. This exemption is in addition to the exemptions provided in Cal. Rev. and Tax. Code §§ 6366 and 6366.1.
(3) If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter.
(4) If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this chapter.
(5) For the purposes of subsections (C)(3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
(6) Except as provided in subsection (C)(7) of this section, a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.
(7) “A retailer engaged in business in the City” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Cal. Veh. Code Division 3, Chapter 1 (commencing with Section 4000), aircraft licensed in compliance with Cal. Pub. Util. Code § 21411, or undocumented vessels registered under Cal. Veh. Code Division 3.5 (commencing with Section 9840). That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.
(D) Any person subject to use tax under this chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Cal. Rev. and Tax. Code Division 2, Part 1.6 with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. (Ord. CCO-11-03 § 1, 2011)
3.45.120 Amendments.
All amendments subsequent to the effective date of the ordinance codified in this chapter to Cal. Rev. and Tax. Code Division 2, Part 1 relating to sales and use taxes and which are not inconsistent with Cal. Rev. and Tax. Code Division 2, Parts 1.6 and 1.7, and all amendments to Cal. Rev. and Tax. Code Division 2, Parts 1.6 and 1.7, shall automatically become a part of this chapter; provided, however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter. (Ord. CCO-11-03 § 1, 2011)
3.45.130 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 Cal. Rev. and Tax. Code Division 2, Part 1.6, of any tax or any amount of tax required to be collected. (Ord. CCO-11-03 § 1, 2011)
3.45.140 Severability.
If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the remainder of the chapter and the application of such provision to other persons or circumstances shall not be affected thereby. (Ord. CCO-11-03 § 1, 2011)
3.45.150 Use of tax proceeds.
All proceeds of the tax levied and imposed by this chapter shall be accounted for and paid into a special fund designated for use by the City of Mt. Shasta for any and all expenditures related to the operation, maintenance, and improvement of the Mt. Shasta Branch Library, or any successor library in the City of Mt. Shasta.
(A) The City is hereby authorized to incur indebtedness in the form of bonds, notes, contractual obligations or other evidences of indebtedness authorized by law to finance or refinance costs for improvements described above, and to pay any and all costs of issuing or incurring such indebtedness, to fund reserve funds, capitalized interest, costs of credit enhancement, costs of interest rate hedging arrangements or any other financing costs associated with such indebtedness. Such indebtedness shall be solely payable from, and may be secured by a pledge and lien on, the proceeds of the tax levied and imposed hereunder. Such indebtedness shall be limited in amount such that the annual debt service in each year is not in excess of 50 percent of the amount of tax proceeds projected by the City to be received in each year. (Ord. CCO-11-03 § 1, 2011)
3.45.160 Citizens’ Advisory Committee.
Although not otherwise required by law, the City Council shall, not later than September 1, 2011, establish a Citizens’ Advisory Committee to review and advise the City Council on the expenditures of the revenue from this transactions and use tax. The Committee shall be established as “the Mt. Shasta Library Tax Advisory Committee.” The operational parameters and specific duties of the Committee shall be established by resolution of the City Council. (Ord. CCO-11-03 § 1, 2011)
3.45.170 Certification – Publication.
Upon approval by the voters, the City Clerk shall certify to the passage and adoption of the ordinance codified in this chapter and shall cause it to be published according to law and transmitted to the Board of Equalization. (Ord. CCO-11-03 § 1, 2011)