Chapter 3.10
SALES AND USE TAX1
Sections:
3.10.030 Sales tax imposed – Amount of tax.
3.10.050 Use tax imposed – Amount of tax.
3.10.060 Use tax – Exemptions.
3.10.070 Adoption of provisions of state law.
3.10.080 Limitations on adoption of state law.
3.10.090 Additional permit not required.
3.10.100 Exclusions from calculation of gross receipts.
3.10.110 Amendments to state law.
3.10.120 Enjoining collection prohibited.
For state law as to uniform local sales and use taxes, see Rev. and Tax. C. §§ 7200 to 7207. As to authority of city to impose a sales and use tax, see Gov. C. § 37101.
3.10.010 Purpose of chapter.
The city council hereby 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 ordinance 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 ordinance 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 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 adopts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the 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 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. 1109 § 1 (Exh. A). Code 1997 § 11-11)
3.10.020 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 chapter. (Ord. 407 § 5; Ord. 1109 § 1 (Exh. A). Code 1997 § 11-12)
3.10.030 Sales tax imposed – Amount of 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 one percent 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. 407 § 5; Ord. 1109 § 1 (Exh. A). Code 1997 § 11-13)
3.10.040 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 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. (Ord. 407 § 5; Ord. 1109 § 1 (Exh. A). Code 1997 § 11-14)
3.10.050 Use tax imposed – Amount of tax.
An excise tax is hereby imposed on the storage, use or other consumption in this city of tangible personal property purchased from any retailer on and after the operative date for storage, use or other consumption in this city at the rate of one percent 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 the delivery is made. (Ord. 407 § 5; Ord. 1109 § 1 (Exh. A). Code 1997 § 11-15)
3.10.060 Use tax – Exemptions.
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 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 Revenue and Taxation Code by the city and county, county or city in this state;
(iii) Provided, however, that the storage or use of tangible personal property in the transportation or transmission of persons, property, or communications or in the generation, transmission or distribution of electricity or in the manufacture, transmission or distribution of gas in intrastate, interstate or foreign commerce by public utilities which are regulated by the Public Utilities Commission of the state of California shall be exempt from 80 percent of the tax due under this section;
(iv) Provided, however, that 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 is exempted from 80 percent of the tax;
(v) And provided, that in addition to the exemptions provided in Section 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 exempt from 80 percent of the tax. (Ord. 1109 § 1 (Exh. A))
3.10.070 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 hereby adopted and made a part of this chapter as though fully set forth herein. (Ord. 407 § 5; Ord. 1109 § 1 (Exh. A). Code 1997 § 11-16. Formerly 3.10.060)
3.10.080 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 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, 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 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, 6796 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. 407 § 5; Ord. 1109 § 1 (Exh. A). Code 1997 § 11-17. Formerly 3.10.070)
3.10.090 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. 407 § 5; Ord. 1109 § 1 (Exh. A). Code 1997 § 11-18. Formerly 3.10.080)
3.10.100 Exclusions from calculation of gross receipts.
There shall be excluded from the gross receipts by which the tax is measured:
A. The amount imposed by the state of California upon a retailer or consumer.
B. Eighty percent of the gross receipts from the sale of tangible personal property to operators of waterborne vessels to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the carriage of persons or property in such vessels for commercial purposes.
C. Eighty percent of the gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of 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. 1109 § 1 (Exh. A))
3.10.110 Amendments to state law.
All subsequent amendments of the Revenue and Taxation Code which relate to the sales and use tax and which are not inconsistent with Part 1.5 of Division 2 of the Revenue and Taxation Code shall automatically become a part of this chapter. (Ord. 407 § 5; Ord. 1109 § 1 (Exh. A). Code 1997 § 11-22. Formerly 3.10.120)
3.10.120 Enjoining collection prohibited.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the state or this city or against any officer of the state or this city, to prevent or enjoin the collection 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. 407 § 5; Ord. 1109 § 1 (Exh. A). Code 1997 § 11-23. Formerly 3.10.130)
Code reviser’s note: Ord. 1109, Section 3.10.110, Applicability of provisions relating to exclusions and exemptions, has been removed, and Sections 3.10.120 and 3.10.130 have been renumbered at the request of the city.