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ORDINANCE NO.3. New Series)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO I11POS-
ING AN EXCISE TAX ON THE USE OR OTHER CONSUMPTION
OF TANGIBLE PERSONAL PROPERTY.
BE IT ORDAINED by-the Council of the City of San Luis
Obispo as follows:
SECTION 1. "USE" DEFINED. "Use" includes the exercise of
any right or power over tangible personal property incident to the
ownership of that property, subject, however, to the following ex-
emotions:
(a) It does not include the sale of that property in the
regular course of business;
(b) It does not include the keeping, retaining or exercis-
ing of any right or power over tangible personal property shipped
or brought into tYi.is City and which is thereafter transported out-
side the City for principal use or consumption outside the City, and
which property is actually so used or consumed;
(c) It does not include the use of such property for the
purpose of being processed, fabricated, or manufactured into, attached
to or incorporated into, other tangible personal property which is
to be transported outside the City and thereafter used principally
outside the City, or which is to be subsequently sold or resold in
the regular course of business;
(d) It does not include the exercise of any right or
power over tangible personal property incident to ownership of that
property if such property was purchased for principal use or con -
cumption outside the City and is so used or consumed.
SECTION 2. IMPOSITIOT,± AND RATE OF 'TAX. An excise tax
is hereby imposed on the use or other consumption in the City of
San Luis Obispo of tangible personal px operty purchased from any
retailer on or after April 1, 1950, for use or other consumption
in said City at the rate of one -half (112) of one(1) per cent of
the sales price of the property.
SE0TIONT 3. USE TAX LEVIED IN SA:,,E 'aANNER AS STATE TAX.
The tax hereby levied, except as otherwise herein provided, is levied
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in the same manner, to the same extent and under the same conditions
as use taxes are levied pursuant to Part I of Division 2 of the Cal-
ifornia Revenue and Taxation Code, known as the "Sales and Use Tax
Law" as amended and in force and effect on January 1, 1950.
SECTION 4. ADOPTION OF STATE USE TAX L.A71 BY, R FEaEi CE.
EXCEPTIONS. All of the provisions of the "Sales and Use Tax Law"
as amended and in force and effect on January 11 1950, except the
provisions thereof.pertaining solely to the "Sales Tax" and Sections
6008, 6201 to 6204, inclusive, 6207, 6226, 6241 to 6246, inclusive
6403, 6453, 7052, 7050, 7057, 7101, 7102, 7151, 7152, and 7153, are
hereby adopted and made a part of this ordinance as though fully
set forth herein, and all rrovisions of any other ordinance in con-
flict therewith are inapplicable to this ordinance and the tax here-
by imposed; provided that the term "sales price" shall not include
the amount of any California State sales tax or use tax, and. that
the word "storage" shall for the purposes of this ordinance be de-
emed deleted from those provisions of the California Revenue. and
Taxation Code adopted by reference, it being the intent of the
Council that the tax imposed by this ordinance shall. not apply to
the storage of tangible personal property.
All of the provisions of the "Sales and Use Tax Lava" here-
by adopted providing for the adoption of rules and regulations and
for hearings on the part of the State Board of Equalization shall
be performed by the Council of the City of San Luis Obispo. All
other provisions of the State "Sales and Use Tax Lana" hereby adopted
providing for the -performance of official action on the part of the
State Board of Equalization shall be performed by the City .
The City of San Luis Obispo shall be deemed substituted
for the State of California whenever the :state is referred to in
said "Sales and Use Tax Law."
The City Attorney of San Luis Obispo shall be deemed sub-
stituted for the Attorney General whenever the Attorney General is
referred to in said "Sales and Use Tax Law."
The City Controller shall be deemed substituted for the
State Controller and State Board of Control whenever the State
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Controller or State Board of Control are referred to in said "Sales
and Use Tax Law."
The County of San Luis Obispo shall be deemed substituted
for the County of Sacramento whenever the County of Sacramento is
referred to in said "Sales and Use Tax Law."
SECTION 5, ADOPTION OF RULES AND REGULATIONS BY REFERENCE.
The rules and regulations of the State Board of Equalization pertain-
ing to the interpretation, administration and enforcement of the
"Sales and .Use Tax Lark" insofar as applicable, shall apply to the
interpretation of this ordinance until specifically abandoned by
the rules and regulations adopted by the Council pursuant to this
ordinance.
SECTION 6. INTERPRETATION. The inclusion of any c4use,
pion or part of the "Sales and Use Tax Law, " Part 1, Division 2
of the Revenue and Taxation Code of the State of California, verbatim
in this ordinance shall not-in or of itself be deemed to exclude any
of the remaining provisions of said "Sales and Use Tax Law" that are
made a part hereof by reference only.
SECTION 70 DUTY TO COLLECT TAX. Every retailer maintain -
ing a place of business in this City shall apply to the City
for authorization to collect the tax imposed by this ordinance. Any
retailer not-maintaining a place of business is this City may apply
to the City Imr k for authorization to collect the tax hereby imposed,
Upon receipt of any application in such form as required by him, the
City e+C -Tk, in the case o a retailer maintaining a place of business
in the City, mazy authorize the applicant to make such collections
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and to forward the same to the City Ci:e=rk.
SECTION 8. PERSONS LIABLE TO TAX. Every person using or
otherwise consuming in this City tangible personal property purchased
From a retailer, is liable for the tax; provided, however, no tax
shall be due hereunder if the tax imposed by Ordinance No. 300 (New
Series) (Sales '%x) of the City of San Luis Obispo has been paid on
the sale of such property. The liability of such person is not ex-
tinguished until the tax has been paid. to the City of San Luis Obispo
except that a receipt from a retailer authorized pursuant to Section
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9 hereof, is sufficient to relieve the purchaser from further
liability for the tax to which the receipt refers.
SECTION 9. COLLECTION OF TAX BY RETAILER. Every re-
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taller who is authorized by the City k to collect the tax im-
posed by this ordinance and who snakes sales of tangible personal
property for use or other consumption in this City, not exempted
under the provisions of this ordinance, shall collect the tax from
the purchaser at the time of making the sale, or, if the use or
other consumption of the tangible personal property is not then
taxable hereunder, at the time the use or other consumption becomes
taxable. Upon collection the tax, the retailer, on demand, shall
give to the purchaser a receipt therefor in the manner and form pre-
% l�eediI-
scribed by the pre-
N. The tax so collected by the retailer
shall be held in trust by him for the City and shall be paid to the
City by the retailer in the manner and at the times elsewhere provided
in this ordinance.
SECTION 10'. SEPARATE DISPLAY OF TAX FROM LIST OR OTHER
PRICE. The tax so collected by the retailer from the purchaser
shall be displayed separately from the list price, the price
advertised in the premises, the marked price or other price on the
sales check or other proof of sale.
SECTION 11. PERSONAL PROPERTY TO 'WHICH TAX APPLIES.
Except as otherwise specifically exempted, the tax hereby imposed
applies to all tangible personal property located in this City and
purchased from a retailer; provided, however, that if the retailer
in good faith takes from the purchaser a certificate that the prop-
erty was purchased prior to the effective date of this ordinance or
was not purchased for use or consumption in this City and has not
been nor will be so used
liability to collect and
signed by and bear the n,
address of the purchaser
property will be used or
be substantially in such
or consume, he shall be relieved of
pay the tax. The certificate shall be
a.me of the purchaser, shall indicate the
and the place where such tangible personal
consumed, the date of purchase, and shall
form as the City may prescribe.
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SECTION 12. EXEMPTIONS. In addition to those exemptions
contained in Part 1 of Division 2 of the California Revenue and Tax-
ation Code which are incorporated into this ordinance by reference,
there shall be excluded from the computation of the tax the sales
price of:
(a) Purchases made by the State of California or by any
agency, department, political subdivision, district or municipal
corporation thereof;
(b) Purchases of tangible personal property to be used
in connection with the erection, construction, repair or alteration
of either public works or buildings belonging to or being conttructed
by or on behalf of or for the use of the United States Government,
the State of California or any agency, department, political sub-
division, district or public or municipal corporation of the State;
(c) Purchases of property upon which a sales tax, purchase
tax, use tax, purchase and use tax, or any of them, has been legally
imposed by and paid on the same transaction to any city of the State
of California.
SECTION 13. REGISTRATION OF RETAILERS. Every retailer
selling tangible personal property for use or other consumption in
the City of San Luis Obispo and which retailer maintains a. place of
business in said city or acts through agents located in said city
and which retailer is not licensed under the provisions of Ordinance
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No. 300 (New Series),(Sales Tax) shall register with the City
and give the name and address of such agent or agents and office
or other place of business in the City.
SECTION 14. DUE DATE OF TAXES. Taxes imposed by this
ordinance are due and payable to the City @Itwk on or before the
last day of the month next succeeding each quarterly period, the
first Quarterly payment to be due and payable under this ordinance
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on or before tIB last day of July, 1950. The City Z,1-ep4- may require
returns and payment of the amount of taxes for quarterly periods
other than calendar quarters depending upon the principal place
of or the nature of the business of the seller or retailer or
may require returns and payment of the amount of taxes for other
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than quarterly periods.
SECTION 15. RETURNS -. Each return filed by a retailer
shall show the total sale price of the property sold by him during
the reporting period in respect of which he collected the tax here-
by imposed. Each return filed by a purchaser shall show the total
sale price of the property purchased by.-him during the reporting
period, in respect of which a tax is due under this ordinance. All
returns shall also show the amount of the taxes for the period 11
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covered by the return and such other information as the City Fork
deems necessary to the proper administration of this ordinance.
SECTION 16. SCHEDULES FOR PAYMENT OF TAX. The Council,
by resolution, shall adopt rules prescribing methods and schedules
for the collection and payment of the tax. Such schedules shall
be so determined as to facilitate collection of this tax at the same
time that the retailer collects the tax imposed under the California
Sales and Use Tax Lacy and so as to, produce an average tax return
of one -half of one percent (1/2 of la%) on all purchases subject to
the use tax.
SECTION 17. SUIT FOR TAX. All taxes hereby levied shall
be payable payable to the City Ck and any civil suit for the collection
\1 thereof may be filed in any court of competent juri.ediction in the
State of California, and the City Attorney of said City shall prose-
cute the action.
SECTION 18, RESALE CERTIFICATE. The City Gk may at
his option accept a State of California Resale Certificate as evidence
that any sale is not a sale for use or consumption in the Oity of
San Luis Obispo, or he may 'in his discreation reo_uire an affidavit
from the seller setting forth such information respecting such sale
as he deems necessary to determine the nature of such sale.
SECTION 19. DISPOSITION OF PROCEEDS. All monies collected
under and pursuant to the provisions of this ordinance shall be
deposited and paid'into the General Fund of the City of San Luis
Obispo.
SECTION 20. DIVULGING OF INFORAATION FORBIDDEN. No
officer or employee of the City of San Luis Obispo having an admini s-
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trative duty under this ordinance shall make known in any manner
whatever the business affairs, operations, or information obtained
by an investigation of records and equipment of any retailer or
any other person visited or examined in the discharge of official
duty, or the amount or source of income, profits, losses, expenditures,
or any particular thereof, set forth or disclosed in any return, or
permit any return or copy thereof or any book containing any abstract
or particulars thereof to be seen or examined by any person. However,
the Council may, by resolution, authorize examination of the returns
by Federal or-State officers or employees or by the tax officers of
this or any other city if a reciprocal arrangement exists. Successors,
receivers, trustees, executors, administrators, assignees, and guaran-
tors, if directly interested, may be given information as to the items
included in the measure and amounts of any unpaid tax or amounts of
any unpaid tax or amounts of tax require to be collected., interest
and penalties.
SECTION 21. FALSE AND FRAUDULENT RETURNS. No person re-
quired to make, render, sign or verify any report under the provisions
of this ordinance, shall make any false or fraudulent return, with
intent to defeat or evade the determination of an amount due and re-
uuired to be paid hereunder.
SECTION 224 FAILURE TO MAKE RETURN OR FURNISH DATA. No
retailer or other
person shall fail. or refuse to furnish any return
required to be made or fail or refuse to furnish a supplemental re-
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turn or other data required by the City Gk, or render a false or
f raudulent return.
SECTION 23. PENAL PROVISIONS. Any person vitiating any
provision of this ordinance shall be guilty of a misdemeanor, and
upon conviction thereof shall be punishable by a fine of not more
than Five Hundred Dollars ($500.00), or by imprisonment in the City
Jail of the City of San Luis Obispo or the �'ounty Jail of the County
of San Luis Obispo for a period of not more than six (6) months or
by both such fine and such imprisonment.
SECTION 24. VALIDITY. If any section, subsection, sentence,
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clause, phrase, or portion of this ordinance is for any reason held
to be invalid or unconstitutional by the decision of any court of
competent jurisdiction., such decision shall.not affect the validity
of the remaining protions of this ordinance. The Council of this
City hereby declares that it would have adopted this ordinance and
each section, subsection, sentence, clause, phrase, or portion there-
of, irrespective of the fact that any one or more sections, subsect-
ions, sentences, clauses, phrases or portions be declared invalid or
unconstitutional.
SECTION 25. EFFECTIVE DATE. This ordinance, together
with the Ayes and Noes, shall be published for two days before its
final passage in the Telegram - Tribune, daily newspaper printed,
published and circulated in said City and shall take effect and be
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in force iffim� aka: dais final passage and approval.
INTRODUCED AND PASSED TO PRINT this 6 day of '-
fe6�d4/'
z, yid-, by the follo,7ing vote:
AYES: D.M. Carpenter, Timothy I. O'Reilly,Kline Williams
'rank 1. Woods
NOES: None
ABSENT: Ulm. 0. Hall
Mayor
ATTEST : � - .
City Clerk
IM
Finally passed this. 20th day of February, 1950
upon the following roll call vote:
AYES; D.M.Ca.rpenter,Wm.O.Hall, Timothy I. O'Reilly,Kline Williams,
,.
Frank V. Mv7 oods
AD97TT: None
P yor
SEAL .
Ll ity Clerk -