Chapter 3.16
SALES AND USE TAX

Sections:

3.16.010    Short title.

3.16.020    Purpose.

3.16.030    Operative date—Contract with state.

3.16.040    Sales tax.

3.16.050    Use tax.

3.16.060    Effect of amendments to state provisions.

3.16.070    Enjoining collection forbidden.

3.16.010 Short title.

This chapter shall be known as the uniform local sales and use tax regulations of the city. (Prior code § 3.12.010)

3.16.020 Purpose.

The city council 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 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 of Division 2 of the state Revenue and Taxation Code;

C.    To adopt sales and use tax regulations which impose a nine-tenths of one percent tax and provide a measure therefor that can be administered and collected by the state board of equalization in a manner that adopts 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 consistent with the provisions of Part 1.5 of Division 2 of the state Revenue and Taxation Code, minimize the burden of recordkeeping upon persons subject to taxation under the provisions of this chapter. (Prior code § 3.12.020)

3.16.030 Operative date—Contract with state.

This chapter shall become operative on July l, 1957, and prior thereto, the city shall contract with the state board of equalization to perform all functions incident to the administration and operation of this chapter; provided, that if the city has not contracted with the state board of equalization, as set forth in this section, prior to July 1, 1957, this chapter 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 chapter shall not become operative prior to the operative date of the uniform local sales and use tax ordinance of the county. (Prior code § 3.12.030)

3.16.040 Sales tax.

A.    For the privilege of selling tangible personal property at retail, a tax is imposed upon all retailers in the city at the rate of nine-tenths 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 chapter.

B.    For the purposes of this chapter, all retail sales shall be presumed to have been consummated at the place of business of the retailer, unless the tangible personal property sold is delivered by the retailer or his or her 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 at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the board of equalization.

C.    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 July 1, 1957, applicable to sales taxes are adopted and made a part of this section as though fully set forth in this chapter.

D.    Wherever and to the extent that, in Part 1 of Division 2 of the state 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 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 state 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 state Revenue and Taxation Code, as adopted.

E.    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.

F.    Exclusions and Exemptions. There shall be excluded from the gross receipts by which the tax is measured:

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

2.    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. (Amended during 1999 codification; prior code § 3.12.040)

3.16.050 Use tax.

A.    An excise tax is 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 nine-tenths of one percent of the sale price of the property. The sale prices 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.    Except as provided in this chapter 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, applicable to use taxes are adopted and made a part of this section as though fully set forth in this chapter.

C.    Wherever, and to the extent that, in Part 1 of Division 2 of the state 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 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 state 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 state 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.

D.    Exclusions and Exemptions. There shall be exempt from the tax due under this section:

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

2.    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 state Revenue and Taxation Code by any city and county, county or city in the state;

3.    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. (Amended during 1999 codification; prior code § 3.12.050)

3.16.060 Effect of amendments to state provisions.

All amendments of the state 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 state Revenue and Taxation Code shall automatically become a part of this chapter. (Prior code § 3.12.060)

3.16.070 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. (Prior code § 3.12.080)