Chapter 22
TAXATION1

Sections:

ARTICLE I. TRANSFER OF CITY TAX FUNCTIONS TO COUNTY

22.1    Generally.

22.2    Transfer of duties to county officers from city assessor, city council, city clerk and chief of police.

22.3    Determination of payments to the county; limitation.

22.4    Procedure for drawing city funds from county treasurer.

ARTICLE II. SALES AND USE TAXES

22.5    Short title of article.

22.6    Purpose of article.

22.7    Effective date of article.

22.8    Sales tax generally.

22.9    Use tax generally.

22.10    Adoption of state law amendments.

22.10-1    Application of provisions relating to exclusions and exemptions.

22.11    Enjoining collection.

22.12    Suspension of existing sales and use tax ordinances.

ARTICLE III. RESERVED

22.13—

22.20    Reserved.

ARTICLE IV. CIGARETTE TAX

22.21    Short title; purpose.

22.22    Definitions.

22.23    Imposition; rate.

22.24    Registration.

22.25    Records and statements required.

22.26    Reports and remittances.

22.27    Penalties for failure to remit tax when due.

22.28    Failure of distributor to collect and report tax; determination of tax by director of finance.

22.29    Appeal.

22.30    Refunds.

22.31    Action by city to collect tax.

22.32    Violation of provisions of article deemed infraction.

ARTICLE I. TRANSFER OF CITY TAX FUNCTIONS TO COUNTY2

22.1 Generally.

The city council hereby determines to provide for the assessment of property for municipal taxes and for the equalization and correction thereof, for the collection and enforcement of the payment of such taxes, for the sale and redemption from sale of property sold for nonpayment of such taxes, by officers of the county and for the performance by officers of the county of the duties of officers of the city respecting such matters, pursuant to and in accordance with the provisions of the act of the Legislature of this state, entitled “An act to provide for the levy and collection of taxes by and for the use of municipal corporations and cities incorporated under the laws of the State of California, except municipal corporations of the first class, and to provide for the consolidation and abolition of certain municipal offices, and to provide that their duties may be performed by certain officers of the county, and fixing the compensation to be allowed for such county officers for the services so rendered to such municipal corporations.” 3 (Ord. No. 500, § 1)

22.2 Transfer of duties to county officers from city assessor, city council, city clerk and chief of police.

The duties of the following officers of the city shall be performed by the following officers of the county with respect to the matters hereinafter referred to:

(a) The city assessor’s duties with respect to the assessment of property in the city for municipal taxes, shall be performed by the county assessor.

(b) The city council’s duties with respect to the equalization and corrections of such assessments of property in the city for municipal taxes, shall be performed by the county board of supervisors.

(c) The city clerk’s duties with respect to the computation and entry of the amount of taxes to be paid as a tax on the property listed on the assessment roll, and the transmissions of such roll to the tax collector shall be performed by the county auditor.

(d) The duties of the chief of police, as ex officio collector with respect to the collection, payment, and enforcement of such taxes including delinquent taxes and other redemption of such property from sale or other penalty for the nonpayment of municipal taxes of the city, shall be performed by the county tax collector. (Ord. No. 500, § 2)

22.3 Determination of payments to the county; limitation.

The amount of compensation to be charged by and paid to the county for the performance of services herein contemplated shall be fixed by agreement between the county board of supervisors and the city council of the city on behalf of the city; provided, however, that such compensation shall in no event exceed one per cent of the first twenty-five thousand dollars of taxes collected, and one-fourth of one per cent of all moneys collected in excess of twenty-five thousand dollars. (Ord. No. 500, § 3)

22.4 Procedure for drawing city funds from county treasurer.

Tax money collected by the county officials under the provisions of this article shall be drawn from the funds belonging to the city in the hands of the county treasurer by warrant of the county auditor which shall be issued at the request of the city clerk in writing. (Ord. No. 500, § 4)

ARTICLE II. SALES AND USE TAXES4

22.5 Short title of article.

This article shall be known as the uniform local sales and use tax regulations of the city. (Ord. No. 545, § 1)

22.6 Purpose of article.

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 sales and use tax regulations which comply 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 sales and use tax regulations which incorporate 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 Division 2 of the Revenue and Taxation code.

(c) To adopt sales and use tax regulations which impose a one per cent tax and provide 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 state sales and use taxes.

(d) To adopt sales and use tax regulations 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 state 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. (Ord. No. 545, § 2; Ord. No. 546, § 1; Ord. No. 666, § 1; Ord. No. 85-6, § 1, 2-19-84)

22.7 Effective date of article.

This article shall become operative on October 1, 1956, and prior thereto this city shall contract with the state board of equalization to perform all functions incident to the administration and operation of these sales and use tax regulations; provided, that if this city shall not have contracted with such state board of equalization, as above set forth, prior to October 1, 1956, this article 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 article shall not become operative prior to the operative date of the uniform local sales and use tax ordinance of the county. (Ord. No. 545, § 3)

22.8 Sales tax generally.

(a) (1) For the privilege of selling tangible personal property 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 on and after the operative date of this article.

(2) 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 was made. In the event a retailer has not 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.

(b) (1) Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the State Revenue and Taxation Code, all of the provisions of Part 1 of Division 2 of such 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.

(2) 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 subsection 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 article; 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 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 provisions of that code; and, in addition, 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 said Revenue and Taxation Code as adopted.

(3) If a seller’s permit has been issued to a retailer under section 6067 of the State Revenue and Taxation Code, an additional seller’s permit shall not be required by reason of this section.

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

(i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(ii) 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.

(4.5)5 There shall be excluded from the gross receipts by which the tax is measured:

(i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(ii) 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. No. 545, § 4; Ord. No. 546, § 2; Ord. No. 666, § 2; Ord. No. 999, §§ 1—3, 10-15-73; Ord. No. 1001, § 1, 11-5-73; Ord. No. 83-21, § 1, 12-5-83; Ord. No. 85-6, § 2, 2-19-85)

22.9 Use tax generally.

(a) 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 article, for storage, use or other consumption in the city at the rate of one per cent 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.

(b) (1) Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the State Revenue and Taxation Code, all of the provisions of Part 1 of Division 2 of such 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.

(2) 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 this city shall be substituted therefor. Nothing in this subsection 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; 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 ordinance; 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 sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828 of the 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 section 6203 nor in the definition of that phrase in section 6203.

(3) There shall be exempt from the tax due under this section:

(i) The amount of any sales or use tax imposed by the state upon a retailer or consumer.

(ii) 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.

(iii) The storage, 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.

(iv) 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 water-borne vessels principally outside the city.

(3.5)6 There shall be exempt from the tax due under this section:

(i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(ii) 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.

(iii) 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. (Ord. No. 545, § 5; Ord. No. 456, § 3; Ord. No. 666, § 3; Ord. No. 999, § 5, 10-15-73; Ord. No. 1001, § 1, 11-5-73; Ord. No. 83-21, § 2, 12-5-83; Ord. No. 85-6, § 3, 2-19-85)

22.10 Adoption of state law amendments.

All amendments of the State Revenue and Taxation Code enacted subsequent to the effective date of this article which relate to the sales and use tax and which are not inconsistent with Part 1.5 of Division 2 of the State Revenue and Taxation Code shall automatically become a part of this article. (Ord. No. 545, § 6)

22.10-1 Application of provisions relating to exclusions and exemptions.

(a) Sections 22.8(b) (4.5), and 22.9(b) (3.5) of this article 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 sections 22.8(b) (4) and 22.9(b) (3) of this article shall become inoperative.

(b) In the event that sections 22.8(b) (4.5) and 22.9 (b) (3.5) of this article become operative and the state board of equalization subsequently adopts an assessment ratio for state-assessed property which is higher than the ratio which is required for local assessments by Section 401 of the Revenue and Taxation Code, sections 22.8 (b) (4) and 22.9 (b) (3) of this article shall become operative on the first day of the month following the month in which such higher ratio is adopted, at which time sections 22.8 (b) (4.5) and 22.9 (b) (3.5) of this article shall become 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 sections 22.8 (b) (4.5) and 22.9 (b) (3.5) shall again become operative and sections 22.8 (b) (4) and 22.9 (b) (3) shall become inoperative. (Ord. No. 999, § 6, 10-15-73)

22.11 Enjoining collection.

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 State Revenue and Taxation Code, of any tax or any amount of tax required to be collected. (Ord. No. 545, § 7)

22.12 Suspension of existing sales and use tax ordinances.

At the time this article goes into operation, the provisions of Ordinance Nos. 494 and 534 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 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 Ordinance Nos. 494 and 534 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 per cent continuously from and after October 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 Ordinance Nos. 494 and 534 shall again be in full force and effect at the rate of one per cent. Nothing in this article shall be construed as relieving any person of the obligation to pay to the city any sales or use tax accrued and owing by reason of the provisions of Ordinance Nos. 494 and 534 in force and effect prior to and including September 30, 1956. (Ord. No. 545, § 8)

ARTICLE III. RESERVED7

22.13—22.20 Reserved.

ARTICLE IV. CIGARETTE TAX8

22.21 Short title; purpose.

(a) Title. This article shall be known as the “cigarette tax ordinance of the City of Gilroy.”

(b) Purpose and Intent. It is the purpose and intent of the council that there be a tax imposed on the privilege of distributing cigarettes in the city for the purpose of raising revenue. The net revenue shall be used to fund the operating expenses of the parks and recreation department, the library department and a fund for the development of cultural and civic activities. (Ord. No. 778, § 1)

22.22 Definitions.

For the purposes of this article, the following words and phrases shall have the meanings respectively ascribed to them by this section:

“Cigarette” means any roll for smoking, made wholly or in part of tobacco, irrespective of size or shape and irrespective of whether the tobacco is flavored, adulterated or mixed with any other ingredient, where such roll has a wrapper or cover made of paper or any other material, except where such wrapper is wholly or in the greater part made of tobacco and such roll weighs over three pounds per thousand.

“Director of finance” means the director of finance of the City of Gilroy.

“Distribute” or “distributing” means the act, by a distributor, of transporting cigarettes to which he has title, or causing or allowing such cigarettes to be transported to a retail outlet in the city.

“Distributor” means a person who, having title to cigarettes, transports them or causes or allows them to be transported to a retail outlet in the city.

“Retail outlet” means any place or premises in the city (including, without limiting the generality of the foregoing, every kind of store, business establishment and club in the city) where cigarettes are transferred to the possession of the ultimate consumer thereof, irrespective of how such transfer is consummated, whether through a natural person, by means of a vending machine or other mechanical device or otherwise.

“Ultimate consumer” means any person who acquires possession of cigarettes for his own use or consumption.

“Untaxed cigarette” means any cigarette which has not yet been distributed in such manner as to result in a tax liability under this article.

“Use” or “consumption” means the exercise of any right or power over cigarettes incident to the ownership thereof, other than the sale of cigarettes or the receiving, handling or holding thereof for the purpose of sale. (Ord. No. 778, § 1)

22.23 Imposition; rate.

An excise tax, at the rate of one mill per cigarette, is hereby imposed upon the privilege of distributing cigarettes to retail outlets in the city. Any cigarette with respect to which a tax has once been imposed under this article shall not be subject upon a subsequent distribution to the tax imposed by this article. Unless the contrary is established, it shall be presumed that all cigarettes distributed in the city are untaxed cigarettes. It shall be unlawful knowingly, to sell, transfer, distribute or give away untaxed cigarettes in the city. (Ord. No. 778, § 1)

22.24 Registration.

Within thirty days after the operative date9 of this article, within thirty days after commencing business or within thirty days after a change in ownership of a business registered under this article, whichever is later, each distributor of cigarettes shall register with the director of finance on a form provided by him. (Ord. No. 778, § 1)

22.25 Records and statements required.

Every distributor shall keep a complete and accurate record of all cigarettes distributed by him in the city. Such records shall, with respect to each separate distribution, include a written statement containing the name and address of the retail outlet to which distribution is made, the name of the persons who own or operate such retail outlet and to whom title or possession of the distributed cigarettes is transferred, the date of delivery, the quantity of cigarettes, the sales price, the amount of tax imposed under this article and such other information as the director of finance may reasonably require. All statements and records required by this section shall be in a form satisfactory to the director of finance. They shall be preserved for a period of three years and shall be offered for inspection at any time upon oral or written demand by the director of finance or his authorized agent.

The director of finance is hereby authorized and directed to offset and deduct from the total amount of tax monies which may become owing and payable by a distributor to the city under the provisions of this article for any calendar month an amount of money equal to two per cent of such total amount of tax monies owing and payable by such distributor to the city for such month, if such distributor has complied with and done all things required of him by the provisions of this section to the satisfaction of the finance director. Such offset and deduction shall be deemed reimbursement to the distributor for costs and expenses incurred by him in complying with and doing all things required of him by this section. (Ord. No. 778, § 1)

22.26 Reports and remittances.

The tax imposed under this article shall be due and payable monthly on or before the last day of the calendar month following the calendar month in which the distribution of cigarettes occurs.

Each distributor shall make a return to the director of finance on forms provided by such director, of the total number of cigarettes distributed to retail outlets in the city by the distributor during each calendar month and the amount of tax due thereon. Each such return shall be filed with the director of finance on or before the last day of the calendar month following the close of the calendar month for which the return is made.

At the time the return is filed, the full amount of the tax imposed by this article shall be remitted to the director of finance. The director of finance may establish a shorter reporting period for any distributor if he deems it necessary in order to insure collection of the tax. Returns and payments are due immediately upon cessation of business for any reason. All returns and payments submitted by each distributor shall be treated as confidential by the director of finance and shall not be released by him except by order of a court of competent jurisdiction or to an official or agent of the United States, the state, the county or the city for official use only. (Ord. No. 778, § 1)

22.27 Penalties for failure to remit tax when due.

(a) Original Delinquency Period. Any distributor who fails to remit any tax imposed by this article within the time required shall pay a penalty of ten per cent of the amount of the tax in addition to the amount of the tax.

(b) Continued Delinquency. Any distributor who fails to remit any delinquent remittance within one month following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten per cent of the amount of the tax in addition to the amount of the tax and the ten per cent penalty first imposed.

(c) Fraud. If the director of finance determines that the nonpayment of any remittance due under this article is due to fraud, a payment of twenty-five per cent of the amount of the tax shall be added thereto in addition to the penalties stated in subparagraphs (a) and (b) of this section.

(d) Interest. In addition to the penalties imposed, any distributor who fails to remit any tax imposed by this article shall pay interest at the rate of eighteen (18) percent per annum. The interest shall be calculated per month or fraction thereof on the amount of the tax and penalties, from the date on which the remittance first became delinquent until paid.

(e) Penalties Merged with Tax. Every penalty imposed with such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid.

(f) Penalties During Pendency of Hearing or Appeal. No penalty provided under the terms of this article shall be imposed during the pendency of any hearing which is provided for in section 22.28 of this article nor during the pendency of any appeal to the city council which is provided for in section 22.28 of this article. (Ord. No. 778, § 1; Ord. No. 2004-06, § II, 5-3-04)

22.28 Failure of distributor to collect and report tax; determination of tax by director of finance.

If any distributor shall fail or refuse, within the time provided for in this article, to make any report and remittance of such tax or any portion thereof required by this article, the director of finance shall proceed to obtain facts and information on which to base his estimate of the tax due. As soon as the director of finance shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this article and payable by any distributor who has failed or refused to make such report and remittance, he shall proceed to determine and assess against such distributor the tax, interest and penalties provided for by this article. In case such determination is made, the director of finance shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the distributor so assessed at his last-known place of address. Such distributor may within ten days after the service of mailing of such notice make application in writing to the director of finance for a hearing on such amount assessed. If application by the distributor for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the director of finance shall become final and conclusive and immediately due and payable. If such application is made, the director of finance shall give not less than five days written notice in the manner prescribed herein to the distributor to show cause at a time and place fixed in such notice why such amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the distributor may appear and offer evidence why such specified tax, interest and penalties should not be so fixed. After such hearing, the director of finance shall determine the proper tax to be remitted and shall thereafter give written notice to the distributor in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after fifteen days, unless an appeal is taken as provided in section 22.29. (Ord. No. 778, § 1)

22.29 Appeal.

Any distributor aggrieved by any decision of the director of finance with respect to the amount of such tax, interest and penalties, if any, may appeal to the council by filing a notice of appeal with the city clerk within fifteen days of the serving or mailing of the determination of tax due. The council shall fix a time and place for hearing such appeal and the city clerk shall give notice in writing to such distributor at his last-known place of address. The findings of the council shall be final and conclusive and shall be served upon the appellant in the manner prescribed above in the service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice. (Ord. No. 778, § 1)

22.30 Refunds.

(a) Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the city under this article, it may be refunded as provided in subparagraph (b) of this section; provided, a claim in writing thereof, stating under penalty of perjury the specific ground upon which the claim is founded, is filed with the director of finance within three years of the date of payment. The claim shall be on forms furnished by the director of finance.

(b) A distributor may claim a refund or take as credit against taxes due but never remitted the amount overpaid, paid more than once or erroneously or illegally collected or received when it is established in a manner prescribed by the director of finance that the amount claimed has been overpaid or paid more than once or has been erroneously or illegally collected or received by the city.

(c) No refund shall be paid under the provisions of this section unless the claimant establishes by written records entitlement thereto. (Ord. No. 778, § 1)

22.31 Action by city to collect tax.

Any tax required to be paid by a distributor under the provisions of this article shall be deemed a debt owed to the city. Any person owing taxes under the provisions of this article shall be liable to an action brought in the name of the city for the recovery of such amount. (Ord. No. 778, § 1)

22.32 Violation of provisions of article deemed infraction.

Any person violating any provision of this article, or any distributor who fails or refuses to register as required herein, or to furnish any return required to be made, or who fails to furnish other data required by the director of finance, or who renders a false or fraudulent return of claim, or any person required to make, render, sign or verify any report or claim who makes a false or fraudulent report or claim with intent to defeat or evade the determination of any amount due under this article is guilty of an infraction. (Ord. No. 778, § 1; Ord. No. 77-15, § 19, 4-18-77)


1

Cross referencesLicense fees generally, § 13.40; taxes and special assessments in connection with subdivisions, §§ 21.85—21.88.


2

State law referencesTaxation generally, Rev. & Tax. C., § 1 et seq.; transfer of city tax functions to county, Gov. C., §§ 51500 to 51519.


3

See Gov. C., §§ 51500 to 51519.


4

State law referencesSales and use taxes generally, Rev. & Tax. C.S., §§ 6001—7176; uniform local sales and use taxes, Rev. & Tax. C.A. §§ 7200—7207.


5

Editor’s note: This subsection (b)(4.5) shall be operative January 1, 1984. On the operative date of any act of the Legislature of the State of California which amends or 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 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983, Subsection (b)(4.5) of § 22.8 shall read as provided by § 3 of Ord. No. 83-21:

    Section 3. City Code section 22.8, subparagraph (4.5) as amended by section 1 of this ordinance, is amended to read:

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

    (i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

    (ii) 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.

    (iii) 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.


6

Editor’s note: This subsection (b)(3.5) shall be operative January 1, 1984. On the operative date of any act of the Legislature of the State of California which amends or 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 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983, subsection (b)(3.5) of § 22.9 shall read as provided by § 4 of Ord. No. 83-21:

    Section 4. City Code section 22.9, subparagraph (3.5) as amended by section 2 of this ordinance is amended to read:

    (3.5) There shall be exempt from the tax due under this section:

    (i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

    (ii) 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.

    (iii) 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.

    (iv) 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.


7

Editor’s note: Ord. No. 86-19, § 72, adopted October 6, 1986, repealed Art. III, §§ 22.13—22.20, in its entirety. Former Art. III, capital outlay recreation fund tax, derived from Ord. No. 735, § 1; Ord. No. 959, § 1, adopted May 15, 1972; and Ord. No. 77-43, § 1, adopted December 19, 1977.


8

State law referencesCigarette tax, Revenue and Taxation Code, § 30001 et seq.


9

Ordinance No. 778 was passed August 15, 1966, to become effective thirty days thereafter and to become operative on the first day of the calendar month immediately following the effective date.