Chapter 3.16
SALES AND USE TAX
Sections:
3.16.070 Adoption of provisions of state law.
3.16.080 Limitations on adoption of state law.
3.16.100 Additional permit not required.
3.16.110 Exclusions and exemptions.
3.16.130 Enjoining collection forbidden.
3.16.010 Title.
This chapter shall be known as the uniform local sales and use tax law. (Ord. 79-7 §1, 1979).
3.16.020 Imposed rate.
Except as otherwise provided herein, the rate of sales and use tax imposed by this chapter shall be one percent.
A. 1. After June 30, 2001, the rate of sales and use tax imposed by this chapter shall be reduced below the current legal maximum rate of one percent to a new rate of .950%.
2. During the term of that certain Memorandum of Understanding (MOU) between the county of Fresno, the city of Kerman, and the Kerman Redevelopment Agency, dated as of July 8, 1988 (the "MOU"), there shall be a credit to a taxpayer against the payment of sales or use taxes due to city in an amount equal to the sales or use tax then due to the county of Fresno by that taxpayer pursuant to the terms of the MOU.
B. 1. The purpose of this change of rate is to simultaneously reciprocally increase the amount of such tax realized by the county of Fresno by the difference in rate of .0050%.
2. This portion of the city’s maximum legally allowed sales/use taxes is being shared with the county of Fresno in accordance with and reliance upon full, complete and timely performance of the MOU.
C. If for any reason the full purposes of this change of rate are not completely and timely realized in accordance with the MOU or otherwise, then, without the necessity of further action by the city council, subsection A of this section shall automatically and immediately cease to be operative of any further force or effect. In such event, the full legal maximum rate of one percent shall immediately become operative, effective and applicable to all sales and use taxes in the city. As required by law, the city shall give prompt notice to the State Board of Equalization to any change in rate triggered by subsection C so that such change in rate can be implemented forthwith. (Ord. 01-03 § 1, 2001: Ord. 00-01 § 1, 2000: Ord. 99-05 § 1, 1999: Ord. 98-03 §1, 1998: Ord. 96-02 §1, 1996: Ord. 94-04 §1, 1994: Ord. 93-08 §1, 1993: Ord. 92-03 §1, 1992: Ord. 79-7 §2, 1979).
3.16.030 Purpose.
The city council declares that this chapter 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 article which complies with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Code;
B. To adopt a sales and use tax article 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 this Revenue and Taxation Code;
C. To adopt a sales and use tax article which imposes a tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from the existing statutory and administrative procedures administering and collecting the California State Sales and Use Taxes;
D. To adopt a sale and use tax article 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 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. (Ord. 79-7 §4, 1979).
3.16.040 Sales tax.
For the privilege of selling tangible personal property at retail, a tax is imposed upon all retailers in the city at the rate stated in Section 3.16.020 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. (Ord. 79-7 §6, 1979).
3.16.050 Use tax.
An excise tax is 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 3.16.020 of the sales price of the property. The sales price shall include delivery charges when such charges are subject to State Sales or Use Tax regardless of the place to which delivery is made. (Ord. 79-7 §8, 1979).
3.16.060 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 chapter; 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 the ordinance codified in this chapter. Such contract shall continue in effect for as long as Fresno County has an operative sales and use tax as required by the California Revenue and Taxation Code. (Ord. 79-7 §5, 1979).
3.16.070 Adoption of provisions of state law.
Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 of Division 2 of the Revenue and Taxation Code are adopted and made a part of this chapter as though fully set forth herein. (Ord. 79-7 §9, 1979).
3.16.080 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 chapter; 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 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. (Ord. 79-7 §10, 1979).
3.16.090 Place of sale.
For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination. 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. (Ord. 79-7 §7, 1979).
3.16.100 Additional 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 chapter. (Ord. 79-7 §11, 1979).
3.16.110 Exclusions and exemptions.
A. The amount subject to tax shall not include any sales or use tax imposed by the state of California upon a retailer or consumer.
B. The storage, use, or other consumption of tangible personal property, the gross receipts from the sale of which have been subject to tax under a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code by any city and county, county, or city, in this state shall be exempt from the tax due under this chapter.
C. There are exempted from the computation of the amount of 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. (Ord. 84-01 §1, 1984: Ord. 83-10 §1, 1983: Ord. 79-7 §12, 1979).
3.16.120 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 the Division 2 of the Revenue and Taxation Code shall automatically become a part of this chapter. (Ord. 79-7 §13, 1979).
3.16.130 Enjoining collection forbidden.
No injunction, 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 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. (Ord. 79-7 §14, 1979).
3.16.140 Operative date.
This chapter shall be operative on September 1, 1979. (Ord. 79-7 §3, 1979).