CHAPTER 2. SALES AND USE TAX

8-2.01 Purposes.

The Council hereby 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 law which complies with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Code of the State;

b. To adopt a sales and use tax law which incorporates provisions identical to those of the Sales and Use Tax Law of the State insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.5 of Division 2 of the said Revenue and Taxation Code;

c. To adopt a sales and use tax law which imposes a .975% 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; and

d. To adopt a sales and use tax law 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 chapter. (2400)

8-2.02 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 of .975% of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the City on and after the operative date of this chapter. (2401)

8-2.03 Sites 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 sale 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 State Board of Equalization. (2402)

8-2.04 Adoption of State Sales Tax Provisions.

Except as hereinafter provided and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code of the State, all of the provisions of Part 1 of Division 2 of said Code, as amended and in force and effect on October 1, 1956, applicable to sales taxes, are hereby adopted and made a part of this section as though fully set forth herein. (2403)

8-2.05 Modification of State Sales Tax Provisions.

Wherever, and to the extent that, in Part 1 of Division 2 of the Revenue and Taxation Code, the State is named or referred to as the taxing agency, the City shall be substituted therefor. Nothing in this section shall be deemed to require the substitution of the name of the 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; nor shall the name of the City be substituted for that of the State in any section when the result of that substitution would require action to be taken by or against the City or any agency thereof, rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this chapter; and neither shall the substitution be deemed to have been made in those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the State, where the result of the substitution would be to provide an exemption from this tax with respect to certain gross receipts which would not otherwise be exempt from this tax while those gross receipts remain subject to tax by the State under the provisions of Part 1 of Division 2 of the said Revenue and Taxation Code; nor to impose this tax with respect to certain gross receipts which would not be subject to tax by the State under the said provisions of that Code; and, in addition, the name of the City shall not be substituted for that of the State in §§6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828 of the said Revenue and Taxation Code as adopted. (2404)

8-2.06 Duplicate Seller’s Permit Not Required.

If a seller’s permit has been issued to a retailer under §6068 of the said Revenue and Taxation Code, an additional seller’s permit shall not be required by reason of this chapter. (2405)

8-2.07 Exclusions from Sales Tax.

There shall be excluded from the gross receipts by which the tax is measured:

a. The amount of any sales or use tax imposed by the State upon a retailer or consumer; and

b. Receipts from sales to operators of common carrier and waterborne vessels of property to be used or consumed in the operation of such common carriers or waterborne vessels principally outside the City. (2405)

8-2.08 Use Tax.

An excise tax is hereby 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 .975% 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. (2407)

8-2.09 Adoption of State Use Tax Provisions.

Except as hereinafter provided and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code of the State, all of the provisions of Part 1 of Division 2 of said Code, as amended and in force and effect on October 1, 1956, applicable to use taxes are hereby adopted and made a part of this section as though fully set forth herein. (2408)

8-2.10 Modification of State Use Tax Provisions.

Wherever, and to the extent that, in Part 1 of Division 2 of the Revenue and Taxation Code the State is named or referred to as the taxing agency, the name of the City shall be substituted therefor. Nothing in this section shall be deemed to require the substitution of the name of the 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; nor shall the name of the City be substituted for that of the State in any section when the result of that substitution would require action to be taken by or against the City or any agency thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this chapter; and neither shall the substitution be deemed to have been made in those sections, including but not necessarily limited to, sections referring to the exterior boundaries of the State where the result of the substitution would be to provide an exemption from this tax with respect to certain storage, use, or other consumption of tangible personal property which would not otherwise be exempt from this tax while such storage, use, or other consumption remains subject to tax by the State under the provisions of Part 1 of Division 2 of the said Revenue and Taxation Code, or to impose this tax with respect to certain storage, use, or other consumption of tangible personal property which would not be subject to tax by the State under the provisions of that Code; and in addition, the name of the City shall not be substituted for that of the State in §§6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828 of the said Revenue and Taxation Code as adopted, and the name of the City shall not be substituted for the word "State" in the phrase "retailer engaged in business in this "State" in §6203 nor in the definition of that phrase in §6203. (2409)

8-2.11 Exemption from Use Tax.

There shall be exempt from the tax due under Section 8-2.08:

a. The amount of any sales or use tax imposed by the State upon a retailer or consumer;

b. The storage, use or other consumption of tangible personal property, the gross receipts from the sale of which have been subject to sales tax under a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the said Revenue and Taxation Code by any city and county, county, or city in this State;

c. 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; and

d. The use or consumption of property purchased by operators of common carrier and waterborne vessels to be used or consumed in the operation of such common carriers or waterborne vessels principally outside the City. (2410)

8-2.12 Amendments.

All amendments of the Revenue and Taxation Code enacted subsequent to the effective date of this chapter which relate to the sales and use tax and which are not inconsistent with Part 1.5 of Division 2 of the said Revenue and Taxation Code shall automatically become a part of this chapter. (2411)

8-2.13 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 Part 1.5 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. (2412)