Chapter 3.04
SALES AND USE TAX
Sections:
3.04.080 Adoption of Provisions of State Law.
3.04.090 Limitations on Adoption of State Law.
3.04.110 Exclusions and Exemptions—Measure of Tax.
3.04.150 Enjoining Collection Forbidden.
3.04.010 Short Title.
This chapter shall be known as the “uniform local sales and use tax ordinance” of the City of Newport Beach. (Ord. 1514 § 1 (part), 1973)
3.04.020 Rate.
The rate of sales tax and use tax imposed by this chapter shall be one percent. (Ord. 1514 § 1 (part), 1973)
3.04.030 Purpose.
The City Council hereby declares that the ordinance codified in 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 of California 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 California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration 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 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. 2023-22 § 80, 2023; Ord. 1514 § 1 (part), 1973)
3.04.050 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 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 January 1, 1974. (Ord. 2023-22 § 82, 2023; Ord. 1514 § 1 (part), 1973)
3.04.060 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 the retailer’s 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 prescribed and adopted by the California Department of Tax and Fee Administration. (Ord. 2023-22 § 83, 2023; Ord. 1514 § 1 (part), 1973)
3.04.070 Use 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 delivery is made. (Ord. 1514 § 1 (part), 1973)
3.04.080 Adoption of Provisions of State Law.
Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of the California Revenue and Taxation Code, Division 2, Part 1.5, all of the provisions of the California Revenue and Taxation Code, Division 2, Part 1, are hereby adopted and made a part of this chapter as though fully set forth herein. (Ord. 2023-22 § 84, 2023; Ord. 1514 § 1 (part), 1973)
3.04.090 Limitations on Adoption of State Law.
In adopting the provisions of California Revenue and Taxation Code Division 2, Part 1, wherever the State is named or referred to as the taxing agency, the 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 California Department of Tax and Fee Administration, 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 California Department of Tax and Fee Administration, 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 California Revenue and Taxation Code Division 2, Part 1, 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 California Revenue and Taxation Code Section 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828; and the substitution shall not be made for the word “State” in the phrase “retailer engaged in business in this State” in California Revenue and Taxation Code Section 6203 or in the definition of that phrase in California Revenue and Taxation Code Section 6203. (Ord. 2023-22 § 85, 2023; Ord. 1514 § 1 (part), 1973)
3.04.100 Permit Not Required.
If a seller’s permit has been issued to a retailer under California Revenue and Taxation Code Section 6067, an additional seller’s permit shall not be required by this chapter. (Ord. 2023-22 § 86, 2023; Ord. 1514 § 1 (part), 1973)
3.04.110 Exclusions and Exemptions Measure of Tax.
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 California Revenue and Taxation Code Division 2, Part 1.5, by any city and county, county or city, in this State shall be exempt from the tax due under the ordinance codified in 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. (Ord. 2023-22 § 87, 2023; Ord. 83-31 § 1, 1983: Ord. 1514 § 1 (part), 1973)
3.04.140 Amendments.
All subsequent amendments of the California Revenue and Taxation Code which relate to the sales and use tax and which are not inconsistent with California Revenue and Taxation Code, Division 2, Part 1.5, shall automatically become a part of this chapter. (Ord. 2023-22 § 88, 2023; Ord. 1514 § 1 (part), 1973)
3.04.150 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 chapter or California Revenue and Taxation Code, Division 2, Part 1.5, of any tax or any amount of tax required to be collected. (Ord. 2023-22 § 89, 2023; Ord. 1514 § 1 (part), 1973)
3.04.170 Severability.
If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the remainder of this chapter and the application of such provision to other persons or circumstances shall not be affected thereby. (Ord. 1514 § 1 (part), 1973)