Chapter 3.08
SALES AND USE TAX
Sections:
3.08.020 Operative date – Contract with state.
3.08.040 Sales tax – Place of sale.
3.08.050 Sales tax – State provisions adopted.
3.08.060 Sales tax – Interpretation of state provisions.
3.08.070 Sales tax – Seller’s permit.
3.08.080 Sales tax – Exclusions.
3.08.100 Use tax – State provisions adopted.
3.08.110 Use tax – Interpretation of state provisions.
3.08.120 Use tax – Exemptions.
3.08.130 Applicability of exclusion and exemption provisions.
3.08.140 Amendments to state law.
3.08.150 Enjoining collection prohibited.
3.08.010 Purpose.
The city council declares that this chapter is adopted to achieve the following, among other, purposes, and directs that the provisions of this chapter 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 Cal. Rev. & Tax. Code Division 2, Part 1.5;
B. To adopt a sales and use tax ordinance which incorporates provisions identical to those of the sales and use tax laws of the state insofar as those provisions are not inconsistent with the requirements and limitations contained in Cal. Rev. & Tax. Code Division 2, Part 1.5;
C. To adopt a sales and use tax ordinance 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 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 Cal. Rev. & Tax. Code Division 2, Part 1.5, 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. (Ord. 701 § 2 (Exh. 1), 2012; Ord. 152 § 2, 1956)
3.08.020 Operative date – Contract with state.
This chapter shall become operative on April 1, 1956, and prior thereto this city shall contract with the State Board of Equalization to perform all functions incident to this chapter; provided, that if this city shall not have 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 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 Los Angeles (county in which this city is located). (Ord. 701 § 2 (Exh. 1), 2012; Ord. 152 § 3, 1956)
3.08.030 Sales tax – Imposed.
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 of Palos Verdes Estates on and after the operative date of this chapter. (Ord. 701 § 2 (Exh. 1), 2012; Ord. 152 § 4(a)(1), 1956)
3.08.040 Sales tax – 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 the rules and regulations to be prescribed and adopted by the Board of Equalization. (Ord. 701 § 2 (Exh. 1), 2012; Ord. 205 § 2, 1961; Ord. 152 § 4(a)(2), 1956)
3.08.050 Sales tax – State provisions adopted.
Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Cal. Rev. & Tax. Code Division 2, Part 1.5, all of the provisions of Cal. Rev. & Tax. Code Division 2, Part 1, as amended and in force and effect on April 1, 1956, applicable to sales taxes, are hereby adopted and made a part of this section as though fully set forth herein. (Ord. 701 § 2 (Exh. 1), 2012; Ord. 152 § 4(b)(1), 1956)
3.08.060 Sales tax – Interpretation of state provisions.
Wherever, and to the extent that, in Cal. Rev. & Tax. Code Division 2, Part 1 the state of California is named or referred to as the taxing agency, the city of Palos Verdes Estates shall be substituted therefor. Nothing in this section shall be deemed to require the substitution of the name of the city of Palos Verdes Estates 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 exception 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 Cal. Rev. & Tax. Code Division 2, Part 1; 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 Cal. Rev. & Tax. Code §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828 as adopted. (Ord. 701 § 2 (Exh. 1), 2012; Ord. 152 § 4(b)(2), 1956)
3.08.070 Sales tax – Seller’s permit.
If a seller’s permit has been issued to a retailer under Cal. Rev. & Tax. Code § 6067, an additional seller’s permit shall not be required by reason of this chapter. (Ord. 701 § 2 (Exh. 1), 2012; Ord. 293 § 1, 1973; Ord. 152 § 4(b)(3), 1956)
3.08.080 Sales tax – Exclusions.
A. There shall be excluded from the gross receipts by which the sales tax is measured:
1. The amount of any sales or use tax imposed by the state of California upon a retailer or consumer;
2. Receipts from sales to operators of common carriers and waterborne vessels of property to be used or consumed in the operation of such common carriers or waterborne vessels principally outside of this city.
B. There shall be excluded from the gross receipts by which the sales tax is measured:
1. The amount of any sales or use tax imposed by the state of California upon a retailer or consumer;
2. 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.
C. There shall be excluded from the gross receipts by which the sales tax is measured:
1. The amount of any sales or use tax imposed by the state of California upon a retailer or consumer;
2. 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;
3. 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. 701 § 2 (Exh. 1), 2012; Ord. 385 §§ 1, 3, 1984; Ord. 293 § 2, 1973; Ord. 152 § 4(b)(4), 1956)
3.08.090 Use tax – Imposed.
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 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. 701 § 2 (Exh. 1), 2012; Ord. 152 § 5(a), 1956)
3.08.100 Use tax – State provisions adopted.
Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Cal. Rev. & Tax. Code Division 2, Part 1.5, all of the provisions of Cal. Rev. & Tax. Code Division 2, Part 1, as amended and in force and effect on April 1, 1956, applicable to use taxes are hereby adopted and made a part of this section as though fully set forth herein. (Ord. 701 § 2 (Exh. 1), 2012; Ord. 152 § 5(b)(1), 1956)
3.08.110 Use tax – Interpretation of state provisions.
Wherever, and to the extent that, in Cal. Rev. & Tax. Code Division 2, Part 1 the state of California is named or referred to as the taxing agency, the name of this city shall be substituted therefor. Nothing in this section 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 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 Cal. Rev. & Tax. Code Division 2, Part 1, 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 Cal. Rev. & Tax. Code §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828 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. (Ord. 701 § 2 (Exh. 1), 2012; Ord. 205 § 5, 1961; Ord. 152 § 5(b)(2), 1956)
3.08.120 Use tax – Exemptions.
A. There shall be exempt from the tax due under PVEMC 3.08.110:
1. The amount of any sales or use tax imposed by the state of California upon a retailer or consumer;
2. 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 Cal. Rev. & Tax. Code Division 2, Part 1.5 by any city and county, county, or city in this state;
3. 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;
4. 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.
B. There shall be exempt from the tax due under PVEMC 3.08.110:
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 have been subject to sales tax under a sales and use tax ordinance enacted in accordance with Cal. Rev. & Tax. Code Division 2, Part 1.5 by any city and county, county, or city in this state;
3. In addition to the exemptions provided in Cal. Rev. & Tax. Code §§ 6366 and 6366.1, 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 to this state, the United States, or any foreign government.
C. There shall be exempt from the tax due under PVEMC 3.08.110:
1. The amount of any sales or use tax imposed by the state of California upon a retailer or consumer;
2. 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 Cal. Rev. & Tax. Code Division 2, Part 1.5 by any city and county, county, or city in this state;
3. 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;
4. In addition to the exemptions provided in Cal. Rev. & Tax. Code §§ 6366 and 6366.1, 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. 701 § 2 (Exh. 1), 2012; Ord. 385 §§ 2, 4, 1984; Ord. 293 § 3, 1973; Ord. 205 § 6, 1961; Ord. 152 § 5(b)(3), 1956)
3.08.130 Applicability of exclusion and exemption provisions.
A. PVEMC 3.08.080(B) and 3.08.120(B) shall be operative January 1, 1984.
B. PVEMC 3.08.080(C) and 3.08.120(C) shall be operative on the operative date of any act of the Legislature of the state which amends or repeals and reenacts Cal. Rev. & Tax. Code § 7202 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 Cal. Rev. & Tax. Code §§ 7202(i)(7) and (i)(8) as those subdivisions read on October 1, 1983. (Ord. 701 § 2 (Exh. 1), 2012; Ord. 385 §§ 5, 6, 1984; Ord. 293 § 4, 1973)
3.08.140 Amendments to state law.
All amendments of the California 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 Cal. Rev. & Tax. Code Division 2, Part 1.5 shall automatically become a part of this chapter. (Ord. 701 § 2 (Exh. 1), 2012; Ord. 152 § 6, 1956)
3.08.150 Enjoining collection prohibited.
No injunction or writ of mandamus 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 Cal. Rev. & Tax. Code Division 2, Part 1.5, of any tax or any amount of tax required to be collected. (Ord. 701 § 2 (Exh. 1), 2012; Ord. 152 § 7, 1956)
3.08.160 Violation – Penalty.
Any person violating any of the provisions of this chapter shall be deemed guilty of an infraction, and upon conviction thereof shall be punishable as described in PVEMC 1.16.010(C). (Ord. 701 § 2 (Exh. 1), 2012; Ord. 495 § 3, 1989; Ord. 152 § 8, 1956)