Chapter 3-2 SALES AND USE TAX

The City Council hereby declares that this Article 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 chapter which complies with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Code;

(B) To adopt sales and use tax chapter which 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 Part 1.5 of Division 2 of the Revenue and Taxation Code;

(C) To adopt a sales and use tax chapter 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 chapter which can be administered in a manner that will, to the degree possible, be 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 Article.

3-2-110 Contract with State.

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 Article; provided, that if this 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 this Article.

3-2-115 Sales tax.

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 SJBMC 3-2-100 of the gross receipts of the retailer from the sales of all tangible personal property sold at retail in this City on and after the operative date.

3-2-120 Place of sale.

For the purposes of this Article, 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.

3-2-125 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 SJBMC 3-2-100 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.

3-2-130 Adoption of provisions of State law.

Except as otherwise provided in this Article 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 Article as though fully set forth herein.

3-2-135 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 Article; the substitution shall not be 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 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.

3-2-140 Permit not required.

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 Article.

3-2-145 Exclusions and exemptions.

There shall be excluded from the measure of tax:

(A) The amount of 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 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 gross receipts from sales to, and the storage, use or other 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 this City.

(D) 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 of California.

3-2-150 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 Article.

(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.

3-2-155 Application of provisions relating to exclusions and exemptions.

(A) SJBMC 3-2-150 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 SJBMC 3-2-145 shall become inoperative.

(B) In the event that SJBMC 3-2-150 becomes operative and the State Board of Equalization subsequently adopts an assessment ratio for the State-assessed property which is higher than the ratio which is required for local assessments by Section 401 of the Revenue and Taxation Code, SJBMC 3-2-145 shall become operative on the first day of the month next following the month in which such higher ratio is adopted, at which time SJBMC 3-2-150 shall be 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 SJBMC 3-2-150 shall again become operative and SJBMC 3-2-145 shall become inoperative.

3-2-160 Amendments.

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 Article.

3-2-165 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 Article, 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.

3-2-170 Penalties.

Any person violating any of the provisions of this Article shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than five hundred dollars ($500.00) or by imprisonment for a period of not more than six (6) months, or by both such fine and imprisonment.

Article 2. Transactions and Use Tax

3-2-175 Purpose.

This Article 2 has been adopted for the following (and other) purposes:

(A) To provide for a transactions and use tax which complies with the requirements and limitations contained in Parts 1.6 and 1.7 of Division 2 of the Revenue and Taxation Code of the State of California;

(B) To provide for a transactions and use tax which 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 Part 1.6 and 1.7 of Division 2 of said Revenue and Taxation Code;

(C) To provide for a transactions and use tax which imposes a three quarters percent (0.75%) 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 provide for a transactions and use tax which can be administered in a manner that will, to the degree possible consistent with the provisions of Parts 1.6 and 1.7 of Division 2 of the said Revenue and Taxation Code, minimize the cost of collecting City transactions and use taxes and at the same time minimize the burden of record keeping upon persons subject to taxation under the provisions thereof;

(E) To provide a source of revenue for general municipal purposes as determined by the City Council of the City of San Juan Bautista. Therefore, this tax is a general tax.

3-2-180 Contract with State.

Prior to the operative date of the ordinance codified in this Article, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation hereof. If the City has not 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.

3-2-185 Operative date.

“Operative date” means the first day of the first calendar quarter commencing more than one hundred ten (110) days after the adoption of the ordinance codified in this Article, the date of such adoption being set forth below.

3-2-190 Imposition of transactions tax.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the City at the rate of three quarters percent (0.75%) of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the City of San Juan Bautista on and after the operative date of the ordinance codified in this Article.

3-2-195 Presumption as to locale of sales.

For the purposes of this Article, 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.

3-2-200 Adoption of certain sections of California Revenue and Taxation Code by reference.

Except as hereinafter provided and except insofar as they are inconsistent with the provisions of Parts 1.6 and 1.7 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part I of Division 2 of said Code, as amended and in force and effect on the operative date of this Part, applicable to sales taxes are hereby adopted and made a part of SJBMC 3-2-200 et seq., as though fully set forth herein.

3-2-205 Substitution of names and titles.

Wherever, and to the extent that, in Part I of Division 2 of the Revenue and Taxation Code, the State of California is named or referred to as the taxing agency for transaction taxes, the City of San Juan Bautista shall be substituted therefor. Nothing in this Section shall be deemed to require the substitution of the name of the City of San Juan Bautista 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. The name of the City shall not 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 hereof. Furthermore, no substitution shall 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, if 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. The name of the City shall not be substituted for that of the State if the result would be 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. Finally, 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.

3-2-210 Waiver of transactor’s permit.

If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by reason of this Article.

3-2-215 Exemptions.

There shall be exempt from the transactions tax due under this Section:

(A) The amount of 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) The gross receipts from the sale 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 the 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) Sales of property to be used outside the City that are shipped to a point outside the City, pursuant to the contract of sale, by delivery to that point by the retailer or his or her agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point, are exempt from the tax.

For purposes of this section, “delivery” of vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code shall be satisfied by registration to an out-of-district address and by a declaration under penalty of perjury, signed by the buyer, stating that the address is, in fact, his or her principal place of residence.

“Delivery” of commercial vehicles shall be satisfied by registration to a place of business out of district and a declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

(D) 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 the ordinance codified in this Article. A lease of tangible personal property that is a continuing sale of that property is exempt from tax 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 the ordinance codified in this Article. For the purposes of this subsection, 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 that right is exercised.

3-2-220 Imposition of use tax.

An excise tax is hereby imposed on the storage, use, or other consumption in the City of San Juan Bautista of tangible personal property purchased from any retailer on or after the operative date of this Part, at the rate of three quarters percent (0.75%) of the sales price of the property subject to the tax. 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.

3-2-225 Adoption of certain sections of California Revenue and Taxation Code by reference.

Except as hereinafter provided, and except in so far as they are inconsistent with the provisions of Parts 1.6 and 1.7 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part I of Division 2 of said Code, as amended and in force and effect on the operative date of this Part, applicable to use taxes are hereby adopted and made a part of SJBMC 3-2-225 et seq., as though fully set forth herein.

3-2-230 Substitution of names and titles.

Wherever, and to the extent that in Part I of Division 2 of said Revenue and Taxation Code the State of California is named or referred to as the taxing agency for use taxes, the City of San Juan Bautista shall be substituted therefor. Nothing in this Section shall be deemed to require the substitution of the name of the City of San Juan Bautista 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. The name of the City shall not 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 hereof. Furthermore, no substitution shall 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, if 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 that would not otherwise be exempt from this tax if that storage, use or other consumption of tangible personal property remained subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code. The name of the City shall not be substituted for that of the State if the result would be to impose this tax with respect to certain storage, use or other consumption of tangible personal property that would not be subject to tax by the State under the provisions of that code. The name of the City shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition of that phrase in Section 6203. Finally, 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.

3-2-235 Exemptions.

There shall be exempt from the use tax due under this Article:

(B) Any person subject to the use tax adopted pursuant to this Article shall be entitled to credit against that tax or any transactions tax, or to reimbursement for a transactions tax, paid to a district or retailer in a district imposing a transactions and use tax pursuant to Parts 1.6 and 1.7 of the Revenue and Taxation Code.

(C) 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, 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.

(D) The storage, use, or other consumption 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 the ordinance codified in this Article. The possession of, or the exercise of any right or power over, tangible personal property under a lease that is a continuing purchase of the property is exempt from tax for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease entered into prior to the operative date of the ordinance codified in this Article. For purposes of this Section, the storage, use, or other consumption of, 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 the right is exercised.

(E) The storage, use, or other consumption in the City of tangible personal property (i) the gross receipts from the sale of which have been subject to the a transactions tax under any State-administered transactions and use tax ordinance; (ii) other than fuel and 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 or person or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of California, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California; (iii) 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 the ordinance codified in this Article; (iv) if the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease that 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 the ordinance codified in this Article.

(F) For purposes of subsection (E) of this Section, storage, use, or other consumption, or possession of, or exercise of any right of 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.

(G) 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.

(H) For purposes of subsection (G) of this Section, “a retailer engaged in business in the City” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Chapter 2 of the Division 3.5 (commencing with Section 9840) of the Vehicle Code. The 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.

3-2-240 Amendments.

All amendments of the Revenue and Taxation Code enacted subsequent to the effective date of this Part that relate to the transactions and use tax and that are not inconsistent with Parts 1.6 and 1.7 of Division 2 of the said Revenue and Taxation Code shall automatically become a part hereof.

3-2-245 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 hereunder, or Parts 1.6 and 1.7 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

Legislative History: Ords. 99 (3/6/56), 100 (4/6/56), 120 (12/5/61), 165 (11/29/73), 94-5 (3/15/94), 2004-07 (11/30/04).