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HomeMy WebLinkAboutORD 708 (1977)., , ORDINANCE NO. 708 247 I AN ORDINANCE OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING THE TUSTIN CITY CODE RELATIVE TO SALES AND USE TAX. The City of Tustin, California, does ordain as follows: 1. Sections 2301 through 2318, comprising Chapter 3 of Article 2, are 5 hereby added to the Tustin City Code, to read a.s follows: 6 CPh~PTER 3: SALES iND USE TAX Sections: 8 2301 - Short Title. 9 2302 - Rate. . 2303 - Purpose. !0 2304 - Operative Date. , . 2305 - Sales Tax. " 11 2306 - Place of Sale~ 2307 - Use Tax. -- .. 12 2308 - Adoption of Provisions of State Law. '2309 - Limitations on Adoption of State Law, 15 2310 - Permit Not Required. -- 2311 - Exclusions and Exemptions--Measure of Tax, 14 2312 - Exclusions and Exemptions--Amount Subje. ct to Tax, 2313 - Application of Provisions Relating to Exclusions and Exemptions, !5 2314 - Amendments, 2315 - Enjoining Collection Forbidden, " 16 2316 - Penalties, 2317 - Severability, 17' 2318 - Repeals, 18 2301, Short Title, This Chapter shall be known as the "Uniform Local '. 19 Sales and Use Tax Ordinance" of the City of Tustin, 20 2302, Rate, The rate of sales tax and use tax imposed By this Chapt.er 21 shall be one percent (1%), -22 2303. P_urpose. The City Council hereby declares that the ordinance 2~ codified in this Chapter is adopted to achieve the followfng, among other, ~4 purposes, and directs that the provisions hereof be fnterpretcd in order to 25 accomplish those purposes: 26 (a) To adopt' a sales and use tax ordinance which complies with the ~7 requirements and limitat~-ons contained in Part 1.5 of Division 2 of the ~ ~8 Revenue and Taxation Code; 29 (b) To adopt a sa].es and use tax ordinance which fi~.corporates provisions 50 identical to those of the Sales and Use Tax Law of the State of California ~1 insofar as those provisions are not incoi~sis.t~nt with the requirements and ~2 limitations contained ~n Part 1.5 of Division 2 of the Revenue and Tax~t~on Code; -24~ (c) To adopt a sales and use tax ordinance which imposes a tax and provides a measure thcrefor that can be administered and collected by the State Board of Equalization 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 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 tile Revenue and Taxation Code, minimize the cost of collecting sales and use taxes and at the same time minimize the burden of record keeping uponpersons subject to taxation under the provisions of this Chapter. 2304. Operative Date. City shall contract with the State Board of Equalization to perform all functions incident to the administration-and operation of this sales and use t~x ordinance; provided, that if City shall not have contracted with the State Board of Equalization prior to the operative date. of this Chapter, it shall nevertheless so contract and i~ such a case the operative date shall be the first day of the calendar quarter following the execution of such a contract by the City and by the State. 2305. Sales Tax. For the privilege of selling tangible personal prCper at 'retail a tax is hereby imposed upon all retailers in the City at the rate of 1% 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 2306. Piece of Sale. For the purposes of this Chapter, all retail sale 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 ou~"'~f 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, re- gardless of the place to'which delivery is made. In the event a retailer ha~ -2- 2z~9 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 determine under rules and regulations to be prescribed and adopted by the State Board of Equalization. 2307. 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 consumpt: in this City at the rate of 1% 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. 2308. 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 pro- visions 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. 2309. 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 City of Tustin 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 Equal- ization, 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 performing the functions incident to the administration or operation of this Chapter; the substitution shall not be made in those sections, including, not 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 -3- 1 subject to tax by the State under the provisions of Part 1 of Division 2 of ~ th~ Revenue and Taxation Code~ or ~o impose tb~s tax with':respect to c~rtai.n 3 sales, storage, use or other'consumption of tangible personal property which 4 would not be subject to tax by the State under the said provisions of that 5 Code; the substitution shall not be made in Sections 6701, 6702 (except in 6 last sentence t~ereof), 6711, 6715, 6737, 6797 or 6828 of the Revenu~ and 7 Taxation Code; and the substitution shall not be made for the word "State" in 8 'the phrase "retailer engaged in business in this State" in Section 6203 or in 9 the definition of that phrase in Section 6203. · 10 2310. Permit Not ReqUired.. If a seller's permit has been issded to a 11 retailer under Section 6067 of the Revenue and Taxation Code, an additional 12 seller's permit shall not be required by this Chapter. " 1~ 2311. Exclusions and Exemptions--Measure ~f Tax. There shall be excluded 14 from the measure of tax: 1~ (a) The amount of any sales or hse tax imposed by the Sta~e of California 16 upon a retailer or consumer. = I7 (b) The storage, use or other consumption of tangible personal property, 18 the gross receipts from the sale of which has been subject to sales tax under I9 a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 20 2 of the Revenue and Taxation Code by any city and countg, county, or city in ~1 this State. 22 (c) The gross receipts from sales to, and the storage, use or o~her consumption of propertypurchased by, operators of common carriers and water- 24 borne vessels to be used or consumed in the operation of such common carriers or waterborne vessels principally outside this City. ~6 (d) The storage or use of tangible personal property in the transportatio ~7 or transmission of persons, property or communications, or in the generation, 28 transmission or distribution of electricity or in the manufacture, transmis~- ;n or distribution of gas in intrastate, interstate or foreign commerce by pubi~ $0 utilities which are regulated by the Public Utilities Commission of the State ~1 of California. ~ 2312. Exclusions and Exemptions--Amount. Subject to Tax. -4- (a) The amount subject to tax shall not include any sales or use tax ~mposed by the State of California upon ~ 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 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 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 waterborne vessels to be used or consumed principally outside ~he'City in which the sale is made and directly and exclusively in the carriage of persons or property of such vessels for commercial purposes. (d) 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 carrier of persons or property of such vessels for commercial purposes is exempte'd 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 s~ch 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 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 air- craft as common carriers of persons or property for hire or compensation under a certificate of pub.lic convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government is exempted from the use tax. 2313. ~ppliCation of Provisions Relating to Exclusions and Exemptions. (a) Section 2312 of this Chapter shall become operative on January -5- 252 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 2311 of this Chapter shall become operative. (b) In the event that Section 2312 of this Chapter 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 2311 of this Chapter 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 2312 of this Chapter shall be inoperative until the first day of the month following the month in which the Board gain adopts an assessment ratio for state-assessed property which is identication to the ratio required for local assessments by Section 401 of the Revenue and Taxation Code, at which time Section 2312 shall again become ~perative and Section 2311 shall become inoperative. 2314. Amendments. 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. 2315. Enjointng Collection Forbidden. No injunction or writof mandate or other legal or equitable process shall issue in any suit, action or proceedin 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. 2316. Penalties. Any person violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable as provided in this Code. 2317. Severability.. If any provision of this Chapter or the application thereof to any person or circumstance is held invalid, the remainder of this -6- 253 ~ !~ Chapter and the application of such.provision to other persons or circum- -! 2 J stances shall not ba affected thereby. 5 !~ 2318. RepealS. Ordinance No. 98 is hereby repealed; provided, however, ""~ 4 that said ordinance shall remain applicable for the purposes of the adminis- 5 tration of said ordinance and the imposition of and the collection of tax with 6 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, 8 effecting credits, the disposition of monies collected, and for the cOmmenceman 9 or continuance of any action or proceeding under said ordinance. 10 PASSED AND ADOPTED at a regula~ meeting of the City Council, City of 11 Tustin, California, held on the 7th day of February, 1977. 15 ' ' ' _' "~'0R '.~ ' 14 ATTEST: 15 16 ' 19 20 21 22 25 26 , 27 . 28 29 30 JGK: sl TS.22 1/11177 ;I 254 STATE OF CALIFOP~NIA) COUNTY OF OF~NGE ) SS CITY OF TUSTIN ) RUTH C. POE, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of members of the City Council of the City of Tustin is five; that the above and foregoing Ordinance No. 708 was duly and regularly. introduced and read at a regular meeting of the City Council held on the 17th day of January ..... , 197.7 and was given its second reading and duly passed and adopted at a regular meeting held on the 7th day of February 1977~ by the following vote: AYES: COUNCILMEN: EDGAR, SHARP, SALTARELLI, WELSH., SCHUSTER. ..... NOES: COUNCILMEN: NONE ABSENT: COUNCILMEN: NONE bity~ of Tustin, Calif0~nia Publish Tustin News February 17, 1977 -