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HomeMy WebLinkAboutOrd. No. 1973-527.c\ T ORDINANCE NO. 527 AN ORDINANCE IMPOSING A SALES AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION AND PROVIDING PENALTIES FOR VIOLATIONS The City Council of the City of Lake Elsinore, California does ordain as follows:. Section 1. SHORT TITLE. This ordinance shall be known as the Uniform Local Sales and Use Tax Ordinance. Section 2. RATE. The rate of sales tax and use tax imposed by this ordinance shall be .01 Section 3. OPERATIVE DATE. This ordinance shall be operative on January 1, 1974. Section 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 imposes a tax and provides a measure therefor 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 the Revenue and Taxation Code, minimize the cost of.collecting city sales and use taxes and at the some time minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. Section 5. CONTRACT WITH STATE. .Prior to the operative dote 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 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 Section 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. Section 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 prescribed and adopted by the State Board of Equalization. BT -527 -A REV. 1 (8 -73) Section 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 Section 2 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. Section 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 Taxa- tion 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 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 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 performing 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 l 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-Co-de; 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 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. "Section 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. i (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 th e Revenue and Taxation Code by any city and county, county, or city in this State. (c)' Thegroes 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, transmission or distribution of electricity or in the manu- facture, transmission or distribution of gas in intrastate, interstate or foreign commerce by public utilities which are regulated by the Public Utilities Commission of the State of California. Section 13. EXCLUSIONS AND EXEMPTIONS. (a) The amount subject to Tax shall not include any salesll or use Tax imposed. by the State of California upon a retailer or consumer. BT -527 -A REV. 1 (8 -73) - 2 - (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 ordinance. (c) There are exempted from the computation of the amount of the soles tax the gross receipts fromrthe 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 waterborne 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,sa)e is made and directly.and; exclusively in,the, use,of such aireraft,as common carriers of •persons or property f under the, authority of the ,laws of ,this state,..the United States, or any foreign government: : c. 9 :..:..i . , r '! c. i ,,:. -. , J' (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 neces- sity issued pursuant to the laws of this state, the United States, or any foreign government is exempted from'the use tax. Section 14. APPLICATION OF'PROVISIONS RELATING TO EXCLUSIONS AND EXEMPTIONS. (a). Section ''13'of this ordinance- shall: become operative on January ist 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 12 of this ordinance shall become inoperative. (b) In the event that Section 13 of this ordinance becomes operative and the State Board of Equalizo- — tion 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 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 13, of this ordinance shall be inoperative until the first day of the "month following the month "in wiich'rtherBoard again adopts an assessment ratio for state- assessed” property which is .identical to the ratio required for local assessments. by Sectiorr.:401:of the Revenue and Taxation Code, at which time Section 13 shall again become" operative and Section,12 shall become inopera- tive. Section 15. 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 ordinance. Section 16. 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 ordinance; or Part L5 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. BT -527 -A REV. 1 (9 -73) - 3- Section 17. PENALTIES. 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 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 pers'dns or circumstances shall not be affected thereby. Section 19. REPEALS. Ordinance No. 374` as amended by Ordinance No. 401 g.; is hereby repealed; provided, however, that said ordinance, as amended, shall remain applicable for the purposes of the administration of said .ordinance 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 i refunds, effecting credits, the disposition of monies :collected, and for the commencement or continuance of any action or proceeding under<soid: ordinance. Section 20. The City Council does hereby declare and determine that this - ordinance is an emergency ordinance for.the immediate preservation of the public peace, health and safety and relates to taxes for the usual and current expenses of the City as set forth in Section 36937 of the Government Code of the State of California and that this Ordinance shall take effect immediately upon its adoption. Passed, Approved and Adopted by the Mayor and City Council and signed by the Mayor and attested by the City Clerk this 9th day of October, 1973. &11L affin ayor City of Lake Elsinor ATTEST: Florene Marshall City Clerk . City of Lake Elsinore 1, Florene Marshall, City Cleric of the City of Lake Elsinore, do hereby certify that the foregoing Ordinance was duly and regularly introduced at a meeting of the City Council on the 9th day of October, 1973 and was duly adopted on motion Councilman Perkins, seconded Councilman DePasquale and carried on the following vote to wit: Ayes: Councilmen Cartier, DePasquale, Harmatz, Perkins, Mayor Chaffin. Noes: None Absent: None In witness whereof, I have hereunto set my hand and affixed the official seal of the City of Lake Elsinore, California, this 9th day of October, /1973. City Clerk BT- 527 -A REV. 1 (8 -73) -4-