PART III - TAXATION
CHAPTER 20
SALES AND USE TAX
(Added by O-379; Amended by O-380; O-384; O-397; O-489; O-733; O-754; O-773; O-797; O-1109)
220.1.1 IMPOSITION AND RATE OF TAX.
For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers at the rate of one (1) percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City on or after August 15, 1955.
220.1.2 IN ADDITION TO ALL OTHER TAXES.
The license tax imposed by the provisions of Section 220.1.1. is in addition to any and all other taxes imposed by any other license tax ordinance of the City.
220.1.3 TAX LEVIED IN SAME MANNER AS STATE TAX.
The tax levied by this Article, except as otherwise herein provided, is levied in the same manner, to the same extent and under the same conditions as sales taxes are levied pursuant to Part 1 of Division 2 of the California Revenue and Taxation Code, known as the Sales and Use Tax Law, as amended and in force and effect on December 1, 1947.
220.1.4 ADOPTION OF STATE SALES AND USE TAX LAW; ADDITIONAL EXEMPTIONS.
All of the provisions of the Sales and Use Tax Law, as amended and in force and effect on October, 1946, except the provisions thereof pertaining solely to the Use Tax and Sections 6051, 6052, 6053, 6066, 6067, 6068, 6069, 6070, 6071, 6451, 7052, 7056, 7101, 7102, 7103, 7151, 7152 and 7153, applicable to sales of property at retail, are hereby adopted and made a part of this Article as though fully set forth herein, and all provisions of any other provision of this Chapter, this Code or any other ordinance of the City in conflict therewith are inapplicable to this Article, and the tax hereby imposed; provided, however, that the term "gross receipts" as used herein, does not include the amount of any tax imposed by the State upon or with respect to retail sales whether imposed upon the retailer or upon the consumer.
In addition to the exemptions contained in Part I of Division 2 of the Revenue and Taxation Code of the State, there shall be excluded from the computation of the tax gross receipts from:
a) Sales made to or by the State, or any agency, department, political subdivision, district or municipal corporation thereof;
b) Sales of property which is shipped to a point outside the City pursuant to the contract of sale by delivery by the retailer to such points by means of:
1) Facilities operated by the retailer;
2) Delivery by the retailer to a carrier for shipment to a consignee at such point; or
3) Delivery by the retailer to a customs broker or for the forwarding agent for shipment outside this City;
c) Sales of property to be used in connection with the erection, construction, repair or alteration of either public works, or buildings belonging to or being constructed by or on behalf of, or for the use of the United States government, the State or any agency, department, political subdivision, district or public or municipal corporation of the State;
d) Sales of property which is shipped from outside the City to purchasers within the City and which property, before being put to any use within the City, is transported to points without the City for principal use or other consumption outside the City;
e) Sales of property to 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;
f) Sales of property by manufacturers to purchasers engaged in manufacturing or commercial enterprises located wholly or partly outside the City where the property is to be transported outside the City without undue delay. Such property is to be used only outside the City and exclusively in such commercial or manufacturing enterprises; provided, this exemption shall not apply to sales made to officers, agents, managers, employees or servants of such purchasers. The purchaser shall deliver to the seller such certificate or other evidence of the proposed transportation and use mentioned herein as may be required by the City Clerk of the City.
g) Sales of property upon which a sales tax, purchase tax, use tax, purchase and use tax, or any of these has been legally imposed by and paid on the same transaction to any City of the State having a similar reciprocal exemption.
220.1.5 ALLOCATION OF DUTIES TO CITY OFFICIALS.
All of the provisions of the Sales and Use Tax Law adopted by the preceding section, providing for the adoption of rules and regulations and for hearings on the part of the State Board of Equalization shall be performed by the City Council. All other provisions of the Sales and Use Tax Law, providing for the performance of official action on the part of the State Board of Equalization shall be performed by the City Clerk.
The City shall be deemed substituted for the State whenever the State is referred to in the Sales and Use Tax Law.
The City Attorney shall be deemed substituted for the Attorney General whenever the Attorney General is referred to in the Sales and Use Tax Law.
The City Auditor shall be deemed substituted for the State Controller and State Board of Control whenever the State Controller and State Board of Control are referred to in the Sales and Use Tax Law.
The County of Los Angeles shall be deemed substituted for the County of Sacramento whenever the County of Sacramento is referred to in the Sales and Use Tax Law.
220.1.6 APPOINTMENT AND DUTIES OF DELINQUENT SALES TAX ADMINISTRATOR.
(Amended by O-434)
It shall be the duty of the delinquent sales tax administrator, when so appointed by the City Council, to perform the duties incident to the collection of delinquent sales taxes due, owing and unpaid the City and to proceed to collect any and all delinquent license fees which are due, owing and unpaid the City at the date this Section takes effect and which may thereafter become due the City by reason of delinquency, and to take such action and perform such further duties in respect to the collection of delinquent taxes as the City Council may hereafter prescribe and set forth.
220.1.7 ADOPTION OF RULES AND REGULATIONS OF STATE BOARD OF EQUALIZATION.
The rules and regulations of the State Board of Equalization pertaining to the interpretation, administration and enforcement of the Sales and Use Tax Law, insofar as applicable to the City, shall apply in the interpretation of this Article until specifically abandoned by the rules and regulations adopted by the City Council pursuant to this Article.
220.1.8 EFFECT OF INCLUSION OF PORTIONS OF STATE LAW VERBATIM RELATIVE TO ADOPTION.
The inclusion of any clause, portion or part of the Sales and Use Tax Law, Part 1, Division 2 of the Revenue and Taxation Code of the State verbatim in this Article shall not in or of itself be deemed to exclude any of the remaining provisions of the Sales and Use Tax Law that are made a part hereof by reference only.
220.1.9 PERMIT REQUIRED; APPLICATION.
Every person desiring to engage in or conduct business as a seller within the City shall file with the City Clerk an application for a permit for each place of business. Every application for a permit shall be made upon a form prescribed by the City Clerk and shall set forth the name under which the applicant transacts or intends to transact business, the location of his place of business and such other information as the City Clerk may require. The application shall be signed by the owner, if a natural person; in the case of an association or partnership, by a member or partner; in the case of a corporation, by an executive officer or some person specifically authorized by the corporation to sign the application, to which shall be attached the written evidence of his authority.
220.1.10 PERMIT FEE.
At the time of making application for a permit, under the preceding Section, the applicant shall pay to the City Clerk a permit fee of One Dollar ($1.00) for each permit.
220.1.11 ISSUANCE OF PERMIT; SEPARATE PERMIT REQUIRED FOR EACH PLACE OF BUSINESS.
After compliance with the two preceding sections by the applicant, the City Clerk shall grant and issue to each applicant a separate permit for each place of business within the City.
220.1.12 PERMIT NOT ASSIGNABLE; FEE FOR CHANGE OF LOCATION OF BUSINESS.
A permit required by this Article is not assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated therein; provided, however, that a change of location may be endorsed upon the permit by the City Clerk upon the payment of a fee of One Dollar ($1.00).
220.1.13 DISPLAY OF PERMIT.
The permit required by this Article shall at all times be conspicuously displayed at the place for which issued.
220.1.14 REVOCATION OF PERMIT; ISSUANCE OF NEW PERMIT AFTER REVOCATION.
Whenever any person fails to comply with any of the provisions of this Article, or any rule or regulation adopted pursuant hereto, the City Council upon hearing, after giving the person ten (10) days notice in writing, specifying the time and place of hearing and requiring him to show cause why his permit or permits should not be revoked, may revoke or suspend any one or more of the permits held by the person. The notice may be served personally or by mail in the manner prescribed for the service of notice of a deficiency determination under the Sales and Use Tax Law. The City Clerk shall not issue a new permit after the revocation of a permit unless the City Council is satisfied that the former holder of a permit will comply with the provisions of this Article and the rules and regulations adopted pursuant hereto and directs the City Clerk to issue such permit.
220.1.15 FEE FOR ISSUANCE OF NEW PERMIT AFTER REVOCATION.
A seller whose permit has been previously suspended or revoked, shall pay the City Clerk a fee of One Dollar ($1.00) for the renewal or reissuance of a permit.
220.1.16 CARRYING ON BUSINESS WITHOUT PERMIT.
A person who engages in business as a seller in the City without a permit, or after a permit has been suspended or revoked and before the renewal or reissuance of a permit, and each officer of any corporation which so engages in business is guilty of a misdemeanor.
220.1.17 WHEN TAX DUE AND PAYABLE; GRANTING OF EXTENSION; PENALTY ON DELINQUENT PAYMENTS.
The license taxes imposed by this Article are due and payable to the City Clerk on or before the last day of the month next succeeding each quarterly period.
The City Clerk, for good cause, may extend for not more than thirty (30) days, the time for making any return or paying any sum required to be paid by this Article. The extension may be granted at any time; provided, that a written request therefor is filed with the City Clerk prior to the delinquency date.
All taxes payable monthly and all taxes payable quarterly under this Article shall be deemed delinquent if not paid on or before the close of business on the last day of the month following the monthly or quarterly period for which the tax is payable. Taxes payable under this Article for periods other than monthly or quarterly periods shall be deemed delinquent at the times designated by the City Clerk in his rules and regulations. Whenever any tax required to be paid by this Article is not paid on or before the date on which it becomes delinquent, a penalty of ten (10) percent of the amount due shall be imposed and an additional five (5) percent of the original tax shall be added at the close of business on the last day of each calendar month thereafter. Every penalty shall become part of the tax imposed by this Article. In no case, however, shall the total penalty exceed fifty (50) percent of the original tax.
220.1.18 TAX TO BE COLLECTED FROM CONSUMER.
The tax imposed by this Article shall be collected by the retailer from the consumer insofar as it can be done.
220.1.19 REPRESENTATIONS BY RETAILER AS TO ABSORPTION OF TAX PROHIBITED.
It shall be unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof, required by this Article, will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold or that, if added, it or any part thereof will be refunded. Any person violating any provisions of this Section is guilty of a misdemeanor.
220.1.20 TAXES PAYABLE TO CITY CLERK; COLLECTION BY CIVIL SUIT.
All taxes levied by this Article shall be payable to the City Clerk. Any civil suit for collection of such taxes may be filed in any Court of competent jurisdiction in the State, and the City Attorney shall prosecute the action.
220.1.21 EVIDENCE THAT SALE IS NOT A SALE AT RETAIL.
The City Clerk may, at his option, accept a State resale certificate as evidence that any sale is not a sale at retail, or he may, in his discretion, require an affidavit from the seller, setting forth such information respecting such sale as he deems necessary to determine the nature of such sale.
220.1.22 DISPOSITION OF PROCEEDS.
All monies collected under and pursuant to the provisions of this Article shall be deposited and paid into the general fund of the City.
220.1.23 INFORMATION NOT TO BE DIVULGED BY CITY OFFICIALS; EXCEPTIONS.
It shall be unlawful for any officer or employee of the City, having an administrative duty under this Article, to make known in any manner whatsoever the business affairs, operations or information obtained by an investigation of records and equipment of any retailer or any other person visited or examined in the discharge of his official duty, or the amount or source of income, profits, losses, expenditures or any particulars thereof set forth or disclosed in any return, or to permit any return, or copy thereof or any book containing any abstract or particulars thereof, to be seen or examined by any person. The City Council may, however, by resolution, authorize examination of the returns by Federal or State officers or employees or by the tax officers of this or any other City if a reciprocal arrangement exists. Successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, may be given information as to the items included in the measure and amounts of any unpaid tax or amounts of tax required to be collected, interest and penalties.
220.1.24 FALSE OR FRAUDULENT RETURNS.
Any person required to make, render, sign or verify any report under the provisions of this Article, who makes any false or fraudulent return, with the intent to defeat or evade the determination of any amount due and required to be paid, under the provisions of this Article, shall be guilty of a misdemeanor, and upon conviction thereof shall be punished as provided by Sec. 11.2.1. of this Code.
220.2.1 DEFINED.
Use includes the exercise of any right or power over tangible personal property incident to the ownership of that property, subject, however, to the following exemptions:
a) It does not include the sale of that property in the regular course of business;
b) It does not include the keeping, retaining or exercising of any right or power over tangible personal property shipped or brought into this City and which is thereafter transported outside the City for principal use or consumption outside the City, and which property is actually so used or consumed;
c) It does not include the use of such property for the purpose of being processed, fabricated, or manufactured into, attached to or incorporated into, other tangible personal property which is to be transported outside the City and thereafter used principally outside the City, or which is to be subsequently sold or resold in the regular course of business;
d) It does not include the exercise of any right or power over tangible personal property incident to ownership of that property if such property was purchased for principal use or consumption outside the City and is so used or consumed.
e) It does not include the use of tangible personal property actually employed in the transportation or transmission of persons, property, gas, electricity or communications in intrastate, interstate or foreign commerce by public utilities regulated by the Public Utilities Commission of the State of California.
220.2.2 IMPOSITION AND RATE OF TAX.
An excise tax is hereby imposed on the use or other consumption in the City of tangible personal property purchased from any retailer on or after the effective date of this Article for use or other consumption in said City at the rate of one (1) percent of the sales price of the property.
220.2.3 USE TAX LEVIED IN SAME MANNER AS STATE TAX.
The tax hereby levied, except as otherwise herein provided, is levied in the same manner, to the same extent and under the same conditions as use taxes are levied pursuant to Part 1 of Division 2 of the California Revenue and Taxation Code, known as the Sales and Use Tax Law as amended.
220.2.4 ADOPTION OF STATE USE TAX LAW BY REFERENCE; EXCEPTIONS.
a) All of the provisions of the Sales and Use Tax Law as amended, except the provisions thereof pertaining solely to the Sales Tax and Sections 6008, 6201 to 6204, inclusive, 6207, 6226, 6241 to 6246, inclusive, 6403, 6453, 7052, 7056, 7057, 7101, 7102, 7151, 7152 and 7153, are hereby adopted and made a part of this Article as though fully set forth herein, and all provisions of any other Article in conflict therewith are inapplicable to this Article and the tax hereby imposed; provided, that the term sales price shall not include the amount of any California State sales tax or use tax, and that the word storage shall for the purposes of this Article be deemed deleted from those provisions of the California Revenue and Taxation Code adopted by reference, it being the intent of the Council that the tax imposed by this Article shall not apply to the storage of tangible personal property.
b) All of the provisions of the Sales and Use Tax Law hereby adopted providing for the adoption of rules and regulations and for hearings on the part of the State Board of Equalization shall be performed by the City Council. All other provisions of the State Sales and Use Tax Law hereby adopted providing for performance of official action on the part of the State Board of Equalization shall be performed by the City Clerk and License Collector.
c) The City shall be deemed substituted for the State of California whenever the State is referred to in said Sales and Use Tax Law.
d) The City Attorney shall be deemed substituted for the Attorney General whenever the Attorney General is referred to in said Sales and Use Tax Law.
e) The City Clerk shall be deemed substituted for the State Controller and State Board of Control whenever the State Controller or State Board of Control are referred to in said Sales and Use Tax Law.
f) The County of Los Angeles shall be deemed substituted for the County of Sacramento whenever the County of Sacramento is referred to in said Sales and Use Tax Law.
220.2.5 ADOPTION OF RULES AND REGULATIONS BY REFERENCE.
The rules and regulations of the State Board of Equalization pertaining to the interpretation, administration and enforcement of the Sales and Use Tax Law insofar as applicable, shall apply to the interpretation of this Article until specifically abandoned by the rules and regulations adopted by the City Council pursuant to this Article.
220.2.6 INTERPRETATION.
The inclusion of any clause, portion or part of the Sales and Use Tax Law, Part 1, Division 2 of the Revenue and Taxation Code of the State of California, verbatim in this Article shall not in or of itself be deemed to exclude any of the remaining provisions of said Sales and Use Tax Law that are made a part hereof by reference only.
220.2.7 DUTY TO COLLECT TAX.
Every retailer maintaining a place of business in this City shall apply to the City Clerk and License Collector for authorization to collect the tax imposed by this Article. Any retailer not maintaining a place of business in this City may apply to the City Clerk and License Collector for authorization to collect the tax hereby imposed. Upon receipt of any application in such form as required by him, the City Clerk and License Collector, in the case of a retailer maintaining a place of business in the City, shall authorize, and in the case of a retailer not maintaining a place of business in the City, may authorize the applicant to make such collections and to forward the same to the City Clerk and License Collector.
220.2.8 PERSONS LIABLE TO TAX.
Every person using or otherwise consuming in this City tangible personal property purchased from a retailer, is liable for the tax; provided, however, no tax shall be due hereunder if the tax imposed by Ordinance No. 397 of the City, as amended, has been paid on the sale of such property. The liability of such person is not extinguished until the tax has been paid to the City, except that a receipt from a retailer authorized pursuant to Sec. 220.2.7. to collect the tax, given to the purchaser pursuant to Sec. 220.2.9. is sufficient to relieve the purchaser from further liability for the tax to which the receipt refers.
220.2.9 COLLECTION OF TAX BY RETAILER.
Every retailer who is authorized by the City Clerk and License Collector to collect the tax imposed by this Article and who makes sales of tangible personal property for use or other consumption in this City, not exempted under the provisions of this Article, shall collect the tax from the purchaser at the time of making the sale, or if the use or other consumption of the tangible personal property is not then taxable hereunder, at the time the use or other consumption becomes taxable. Upon collecting the tax, the retailer, on demand, shall give to the purchaser a receipt therefor in the manner and form prescribed by the City Clerk and License Collector. The tax so collected by the retailer shall be held in trust by him for the City and shall be paid to the City by the retailer in the manner and at the times elsewhere provided in this Article.
220.2.10 SEPARATE DISPLAY OF TAX FROM LIST OR OTHER PRICE.
The tax so collected by the retailer from the purchaser shall be displayed separately from the list price, the price advertised in the premises, the marked price or other price on the sales check or other proof of sale.
220.2.11 PERSONAL PROPERTY TO WHICH TAX APPLIED.
Except as otherwise specifically exempted, the tax hereby imposed applies to all tangible personal property located in this City and purchased from a retailer; provided, however, that if the retailer in good faith takes from the purchaser a certificate that the property was purchased prior to the effective date of this Article or was not purchased for use or consumption in this City and has not been nor will be so used, or consumed, he shall be relieved of liability to collect and pay the tax. The certificate shall be signed by and bear the name of the purchaser, shall indicate the address of the purchaser and the place where such tangible personal property will be used or consumed, the date of purchase, and shall be substantially in such form as the City Clerk and License Collector may prescribe.
220.2.12 EXEMPTIONS.
In addition to those exemptions contained in Part 1 of Division 2 of the California Revenue and Taxation Code which are incorporated into this Article by reference, there shall be excluded from the computation of the tax the sales price of:
a) Purchases made by the State or by any agency, department, political subdivision, district or municipal corporation thereof;
b) Purchases of tangible personal property to be used in connection with the erection, construction, repair or alteration of either public works or buildings belonging to or being constructed by or on behalf of or for the use of the United States Government, the State or any agency, department, political subdivision, district or public or municipal corporation of the State;
c) Purchases made pursuant to contracts actually executed in good faith prior to August 1, 1955;
d) Purchases of property upon which a sales tax, purchase tax, use tax or any of them has been legally imposed by and paid on the same transaction to any city of the State.
220.2.13 REGISTRATION OF RETAILERS.
Every retailer selling tangible personal property for use or other consumption in the City and which retailer maintains a place of business in said City or acts through agents located in said City and which retailer is not licensed under the provisions of Ordinance No. 397, as amended, shall register with the City Clerk and License Collector and give the name and address of such agent or agents and office or other place of business in the City.
220.2.14 DUE DATE OF TAXES.
Taxes imposed by this Article are due and payable to the City Clerk and License Collector on or before the last day of the month next succeeding each quarterly period, the first quarterly payment to be due and payable under this Article on or before the first day of October, 1955. The City Clerk and License Collector may require returns and payment of the amount of taxes for quarterly periods other than calendar quarters depending upon the principal place of or the nature of the business of the seller or retailer or may require returns and payment of the amount of taxes for other than quarterly periods.
220.2.15 RETURNS.
Each return filed by a retailer shall show the total sale price of the property sold by him during the reporting period in respect of which he collected the tax hereby imposed. Each return filed by a purchaser shall show the total sale price of the property purchased by him during the reporting period, in respect of which a tax is due under this Article. All returns shall also show the amount of the taxes for the period covered by the return and such other information as the City Clerk and License Collector deem necessary to the proper administration of this Article.
220.2.16 EXTENSION OF TIME; WAIVER OF COMPROMISE.
The City Clerk and License Collector shall have power, for good cause shown, to extend for a period of not to exceed thirty-one (31) days, the time for making any return or paying any amount required to be paid under this Article, when requested to do so in writing, before the same becomes delinquent. The City Clerk and License Collector may, with the written approval of the City Attorney, waive or compromise any penalty or interest that would otherwise accrue under the provisions of this Article. The City Clerk and License Collector shall make and transmit to the City Council quarterly, a detailed report of any sums so waived or compromised with the reasons therefor.
220.2.17 SCHEDULES FOR PAYMENT OF TAX.
The City Council, by resolution, shall adopt rules prescribing methods and schedules for the collection and payment of the tax. Such schedules shall be so determined as to facilitate collection of this tax at the same time that the retailer collects the tax imposed under the California Sales and Use Tax Law and so as to produce an average tax return of one (1) percent on all purchases subject to the use tax.
220.2.18 SUIT FOR TAX.
All taxes hereby levied shall be payable to the City Clerk and License Collector and any civil suit for the collection thereof may be filed in any court of competent jurisdiction in the State of California and the City Attorney of the City shall prosecute the action.
220.2.19 RESALE CERTIFICATE.
The City Clerk and License Collector may at his option, accept a State of California resale certificate as evidence that any sale is not a sale for use or consumption in the City, or he may in his discretion, require an affidavit from the seller setting forth such information respecting such sale as he deems necessary to determine the nature of such sale.
220.2.20 DISPOSITION OF PROCEEDS.
All monies collected under and pursuant to the provisions of this Article shall be deposited and paid into the general fund of the City.
220.2.21 DIVULGING OF INFORMATION FORBIDDEN.
No officer or employee of the City having an administrative duty under this Article shall make known in any manner whatever the business affairs, operations, or information obtained by an investigation of records and equipment or any retailer or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particulars thereof, set forth or disclosed in any return, or permit any return or copy thereof or any book containing any abstract or particulars thereof to be seen or examined by any person. However, the City Council may, by resolution, authorize examination of the returns by Federal or State officers or employees or by the tax officers of or any other City if a reciprocal arrangement exists. Successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, may be given information as to the items included in the measure and amounts of any unpaid tax or amounts of tax required to be collected, interest and penalties.
220.2.22 FALSE OR FRAUDULENT RETURNS.
No person required to make, render, sign or verify any report under the provisions of this Article, shall make any false or fraudulent return, with intent to defeat or evade, the determination of an amount due and required to be paid hereunder.
220.2.23 FAILURE TO MAKE RETURN OR FURNISH DATA.
No retailer or other person shall fail or refuse to furnish any return required to be made or fail or refuse to furnish a supplemental return or other data required by the City Clerk and License Collector, or render a false or fraudulent return.
220.3.1 SHORT TITLE.
This Article shall be known as the Uniform Local Sales and Use Tax Ordinance of the City.
220.3.2 PURPOSE.
(Amended by O-1278)
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 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 of California 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 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 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 said Revenue and Taxation Code, 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 Article.
220.3.3 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 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.
220.3.4 SALES TAX.
(Amended by O-1278)
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 Section 220.3.12. 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.
220.3.5 USE TAX.
(Amended by O-1278)
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 Section 220.3.12. 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.
220.3.6 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 said Revenue and Taxation Code shall automatically become a part of this Article.
220.3.7 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.
220.3.8 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.
220.3.9 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 I 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.
220.3.10 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.
220.3.11 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.
220.3.12 RATE.
The rate of sales tax and use tax imposed by this Article shall be one (1) percent.
220.3.13 OPERATIVE DATE.
This Article shall be operative on January 1, 1974.
220.3.14 EXCLUSIONS AND EXEMPTIONS.
(Amended by O-3082)
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 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.
220.3.15 EXCLUSIONS AND EXEMPTIONS.
(Amended by O-3082)
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.
220.3.16 APPLICATION OF PROVISIONS RELATING TO EXCLUSIONS AND EXEMPTIONS.
(Amended by O-3082)
a) Section 220.3.14. shall become operative on January 1, 1984.
b) Section 220.3.15. 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.
220.3.17 EXISTING SALES AND USE TAX PROVISIONS SUSPENDED.
At the time this Article goes into operation, the provisions of Article 2 of this Chapter and Ordinance Nos. 753, 754 and 773 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 the power to adopt this Article, 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 Article 2 of this Chapter and Ordinances Nos. 753, 754 and 773 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 (1) 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 Article, the provisions of Article 2 of this Chapter and Ordinances Nos. 753, 754 and 773 shall again be in full force and effect at the rate of one (1) percent.
220.3.18 CREDIT AGAINST TAXES DUE AND PAYABLE TO REDEVELOPMENT AGENCY.
(Added by O-3216)
In the event that the Redevelopment Agency of the City adopts an ordinance pursuant to the provisions of Section 7202.6 of the Revenue and Taxation Code of California which provides for the levying of a sales and use tax within a project area of the Redevelopment Agency, any retailer or other person required to pay a sales or use tax pursuant to the provisions of this Section shall be given a credit against amounts payable under this Section in the amount of sales and/or use taxes payable to the Redevelopment Agency of the City under such ordinance adopted pursuant to the provisions of said Section 7202.6.