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HomeMy WebLinkAbout0596ORDINANCE NO. 596 (1973 Series) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO IMPOSING A SALES AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION AND PROVIDING PENALTIES FOR VIOLATIONS: AND REPEALING PREVIOUS SALES AND USE TAX ORDINANCES. BE-IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. The Municipal Code is hereby amended to add new Sections 6400.1 through 6400.18 as follows: "Section 6400.1. SHORT TITLE. This ordinance shall be known as the Uniform Local Sales and Use Tax Ordinance. Section 6400.2. RATE. The rate of sales tax and use tax imposed by this ordinance shall be one percent (1 %) . Section 6400.3. OPERATIVE DATE. This ordinance shall be operative on January 1, 1974. Section 6400.4. PURPOSE. The City Council hereby declares that this ordinance 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 ORDINANCE NO. 596 (1973 Series) Page 2 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 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 ordinance. Section 6400.5. 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 ordinance; 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 this ordinance. Section 6400.6. 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 stated in Sec. 6400.2 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. ORDINANCE NO. 596 (1973 Series) Page 3 Section 6400.7. PLACE OF SALE. For the purposes of this ordinance, 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 pre- scribed and adopted by the State Board of Equalization. Section 6400.8. 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 stated in Sec. 6400.2of 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. Section 6400.9. ADOPTION OF PROVISIONS OF STATE LAW. Except as otherwise provided in this ordinance 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 ordinance as though fully set forth herein. Section 6400.10. 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 ORDINANCE NO. 596 (1973 Series) Page 4 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 per- forming the functions incident to the administration or operation of this ordinance; 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 said 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. Section 6400.11. 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 ordinance. ORDINANCE NO. 596 (1973 Series) Page 5 Section 6400.12. EXCLUSIONS AND EXEMPTIONS. There shall be excluded from the measure of tax: (a) The amount of 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 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 Revenue and Taxation Code by any city and county, county, or city in this State. (c) The gross receipts from sales to, and the storage, use or other consumption of property purchased by, operators of common carriers and waterborne vessels to be used or consumed in the operation of such common carriers or waterborne vessels principally outside this city. (d) The storage or use of tangible personal property in the transportation or transmission of persons, property or communications, or in the generation, trans- mission or distribution of electricity or in the manu- facture, transmission or distribution or gas in intra- state or foreign commerce by public utilities which are regulated by the Public Utilities Commission of the State of California. Section 6400.13. 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 ORDINANCE NO. 596 (1973 Series) Page 6 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 ordinance. (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 waterborne vessels to be used or consumed principally outside the city in which the sale is made and directly and exclusively in the carriage of persons or property in such vessels for commercial purposes. (d) The storage, use, or other consumption of tangible personal property purchased by operators of water- borne vessels and used or consumed by such operators directly and exclusively in the carriage of persons or property of such vessels for commercial purposes is exempted from the use tax. (e) 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. (f) 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 ORDINANCE: NO. 596 (1973 Series) Page 7 the laws of this state, the United States, or any foreign government is exempted from the use tax. Section 6400.14. APPLICATION OF PROVISIONS RELATING TO EXCLUSIONS AND EXEMPTIONS. (a) Section 6400.13 of this ordinance shall become operative on January 1st of the year following the year in which the State Board of Equalization adopts an assessment ratio for state- assessed property which . is identical to the ratio which is required for local assessments by Section 401 of the Revenue and Taxation Code, at which time Section 6400.12 of this ordinance shall become inoperative. (b) In the event that Section 6400.13 of this ordinance becomes operative and the State Board of Equalization subsequently adopts an assessment ratio for the state - assessed property which is higher than the ratio which is required for local assessments by Section 401 of the Revenue and Taxation Code, Section 6400.12 of this ordinance shall become operative on the first day of the month next following the month in which such higher ratio is adopted, at which time Section 6400.13 of this ordinance shall be inoperative until the first day of the month following the month-in which the Board again adopts an assessment ratio for state - assessed property which is identical to the ratio required for local assessments by Section 401 of the Revenue and Taxation Code, at which time Section 6400.13 shall again become operative and Section 6400.12 shall become inoperative. - Section 6400.15. AMENDMENTS. All subsequent amendments of the Revenue and Taxation Code which relate to the sales and use tax and which are not in- consistent with Part 1.5 of Division 2 of the Revenue and .. fay. ORDINANCE NO. 596 (1973 Series) Page 8 Taxation,Code shall automatically become a part of this ordinance. Section 6400.16. ENJOINING COLLECTION FORBIDDEN. No injunction or writ of mandate or other legal or equitable process shall issue in ceeding in any court against the against any officer of the State or enjoin the collection under t of Division 2 of the Revenue and or any amount of tax required to Section 6400.17. PENALTIES. any suit, action or pro - State or this City, or or this City, to prevent zis ordinance, or Part 1.5 Taxation Code, of any tax be collected. Any person violating any of the provisions of this ordinance shall be deemed guilty of a misdemeanor, and upon conviction thereof shall.be punishable by a fine of not more than $500.00 or by imprisonment for a period of not more than six months, or by both such fine and imprisonment. Section 6400.18. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby." SECTION 2. Existing Municipal Code Sections 6300 through 6300.17, 6320 through 6320.21, and 6400.1 through 6400.11 are hereby repealed, effective January 1, 1974; provided, however, that said sections shall remain applicable for the purposes of the administra- tion of said sections and the imposition of and the collection.of tax with respect to the sales of, and the storage, use, or other consumption of tangible personal property prior to January 1, 1974, the making of refunds;-effecting: credits, the disposition of monies collected, and for the commencement or continuance of any action or proceeding under said sections. rn- ORDINANCE NO. 596 (1973 Series) Page 9 SECTION 3. This ordinance is a taxing ordinance which shall be effective upon its adoption and the provisions of which shall be operative upon January 1, 1974. SECTION 4. The City Clerk shall publish this ordinance once in a newspaper of general circulation,-but failure to so publish shall not affect its validity. INTRODUCED AND FINALLY PASSED by the Council of the City of San Luis Obispo at a Regular Meeting thereof held on the 1st day of October, 1973, on motion of Councilman Graham, seconded by Councilman Brown, and on the following roll.call vote: AYES: Councilmen Brown, Graham, Gurnee, Norris and Mayor Schwartz NOES: None ABSENT: None ATTEST: t,,-