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HomeMy WebLinkAboutNS-1187ORDINANCE NO. NS-1187 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADMINISTERED BY THE STATE BOARD OF EQUALIZATION AND PROVIDING PENALTIES FOR VIOLATIONS THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: SECTION I: REPEALS. Article II, "Sales and Use Tax," consisting of Sections 35-50 to 35-56 inclusive, of Chapter 35 of the Santa Ana Municipal Code, as enacted in 1952 and amended in 1956 and 1961, is hereby repealed; provided, how- ever, that said article, as amended, shall remain applicable for the purposes of the administration of said article and the imposition of and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 ordinance. SECTION II: That the Santa Ana Municipal Code is hereb~ amended by adding an article, to be numbered Article II, Sections 35-50 to 35-66, inclusive, of Chapter 35, which said article reads as follows: Article II. Sales and Use Tax. Sec. 35-50. SHORT TITLE. This article shall be known as the Uniform Local Sales and Use Tax Ordinance. Sec. 35-51. RATE. The rate of sales tax and use tax imposed by this article shall be one per cent (1%). Sec. 35-52. OPERATIVE DATE. This ordinance shall be operative on January 1, 1974. Sec. 35-53. PURPOSE. The City Council hereby declares that this article 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 incor- porates 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 con- tained 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 Equa- lization in administering and collecting the California State Sales and Use Taxes; ORDINANCE NS-1187 PAGE TWO (d) To adopt a sales and use tax ordinance which can be administered in a manner that will, to the degree possible con- sistent 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 bur- den of record keeping upon persons subject to taxation under the provisions of this article. Sec. 35-54. CONTRACT WITH STATE. Prior to the operative date this city shall contract with the State Board of Equaliza- tion 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 arti- cle. Sec. 35-55. 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 35-51 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. Sec. 35-56. PLACE OF SALE. For the purposes of this article, all retail sales are consummated at the place of busi- ness 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 perma- nent 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. Sec. 35-57. 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 35-51 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 regard- less of the place to which delivery is made. Sec. 35-58. ADOPTION OF PROVISIONS OF STATE LAW. Except as otherwise provided in this article and except insofar as they are inconsistent with the provision 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 here- by adopted and made a part of this article as though fully set forth herein. Sec. 35-59. 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 ORDINANCE NS-l187 PAGE THREE Treasury, or the Constitution of the State of California; the substitution shall not be made when the result of that substi- tution 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 substi- tution shall not be made in those sections, including, but not necessarily limited to, sections referring to the exterior boun- daries of the State of California, where the result of the sub- stitution 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 consump- tion 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. Sec. 35-60. 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 article. Sec. 35-61. EXCLUSIONS AND EXEMPTIONS. (Where the assess- ment ratio exceeds that required for local assessments by Sec- tion 401 Revenue and Taxation Code.) 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 ordi- nance 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, transmission or,distri- bution of electricity or in the manufacture, transmission or distribution of gas in intrastate, interstate or foreign com- merce by public utilities which are regulated by the Public Utilities Commission of the State of California. Sec. 35-62. EXCLUSIONS AND EXEMPTIONS. (Where the assess- ment ratio equals that required for local assessments by Section 401 Revenue and Taxation Code.) (a) The amount subject to tax shall not include any sales 0RDINANCE NS-1187 PAGE FOUR 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 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 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 con- sumed princip~Aly 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 pur- chased 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 compensa- tion under a certificate of public convenience and necessity issued pursuant to the laws of this state, the United States, or any foreign government is exempted from the use tax. Sec. 35-63. APPLICATION OF PROVISIONS RELATING TO EXCLU- SIONS AND EXEMPTIONS. (a) Section 35-62 of this article 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 35-61 of this article shall become inoperative. (b) In the event that Section 35-62 of this article be- comes 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 35-61 of this article 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 35-62 of this article shall be inoperative until the first day of the month following the month in which the Board again adopts an assess- ment 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 35-62 shall again become operative and Section 35-61 shall become inoperative. ORDINANCE NS-l187 PAGE FIVE Sec. 35-64. AMENDMENTS. Ail 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 article. Sec. 35-65. ENJOINING COLLECTION FORBIDDEN. No injunc- tion 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 article, 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. Sec. 35-66. PENALTIES. Any person violating any of the provision of this article shall he deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable as provided for in Section 1-8 of this code. SECTION III: SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circum- stance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circum- stances shall not he affected thereby. SECTION IV: The Clerk of the Council shall certify to the passage of this ordinance and cause the same to be published in some daily newspaper printed and published in the city of Santa Ana. SECTION V: This ordinance shall take effect upon the date of publication or posting after its adoption. PASSED AND ADOPTED by the City Council of the City of Santa Ana at its regular meeting held on the 1 day of October , 1973. ATTEST: CLERK OF T~E COUNCIL ORDINANCE NS-1187 PAGE SIX STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF SANTA ANA ) ss I, FLORENCE I. MALONE, do hereby certify that I am the Clerk of the Council of the City of Santa Ana; that the foregoing Ordinance was introduced to said Council at its regular meeting held on the 1~ day of ~e~Je~xber , 1973 and was again considered by said Council at its meeting held on the 1 day of October , 1973, and was at said meeting passed and adopted by the following vote, to wit: AYES, COUNCILMEN: NOES, COUNCILMEN: Griset, Yamamoto, Markel, Garthe, Evans, Ward None ABSENT, COUNCILMEN: PattersQn CLERK OF THE COUNCIL S A. Wi~RS, C~I~TORNEY