HomeMy WebLinkAboutRES 22-7327 (SALES & USE TAX- CALLING ELECTION)CITY OF HERMOSA BEACH
RESOLUTION NO. 22-7327
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA
BEACH, CALIFORNIA CALLING FOR THE PLACEMENT OF A GENERAL TAX
MEASURE ON THE BALLOT FOR THE NOVEMBER 8, 2022 GENERAL
MUNICIPAL ELECTION FOR THE SUBMISSION TO THE QUALIFIED VOTERS
OF A LOCALLY CONTROLLED ORDINANCE TO ENACT A GENERAL
TRANSACTIONS AND USE TAX (SALES TAX) AT THE RATE OF THREE-
QUARTER CENT (¾ ¢) AND REQUESTING THE BOARD OF SUPERVISORS
RENDER THE ELECTION CONSOLIDATION SERVICES ADOPTED IN
RESOLUTION NO. 22-7317 FOR THIS MEASURE
WHEREAS, the City Council of the City of Hermosa Beach (“City”) is
authorized to levy a Transactions and Use Tax (“sales tax”) for general purposes
pursuant to California Revenue and Taxation Code section 7285.9, subject to
approval by a majority vote of the electorate pursuant to Article XIII C, section 2 of
the California Constitution (“Proposition 218”); and
WHEREAS, pursuant to California Elections Code section 9222, the City
Council has authority to place local measures on the ballot to be considered at a
Municipal Election; and
WHEREAS, the City Council would like to submit to the voters at the
November 8, 2022 General Municipal Election a measure enacting a general sales
tax at a rate of three quarter cent (3/4¢) on the sale and/or use of all tangible
personal property sold at retail in the City until it is ended by voters, as more
specifically set forth in the attached proposed ordinance adding Chapter 3.44 to
Title 3 of the City’s Municipal Code; and
WHEREAS, the ¾ cent sales tax is a general tax, the revenue of which will be
placed in the City’s general fund and will be used to pay for important general
City services; and
WHEREAS, on November 6, 1996, the voters of the State of California
approved Proposition 218, an amendment to the State Constitution which requires
that all general taxes which are imposed, extended or increased must be
submitted to the electorate and approved by a majority vote of the qualified
electors voting in the election; and
WHEREAS, pursuant to Proposition 218 (California Constitution, Article XIII C,
§ 2(b)), the general rule is that any local election for the approval of an increase
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to a general tax must be consolidated with a regularly scheduled general election
for members of the governing body of the local government; and
WHEREAS, the next regularly scheduled general election at which City
Council members are to be elected is November 8, 2022; and
WHEREAS, pursuant to Government Code section 53724 (“Proposition 62”)
and Revenue and Taxation Code section 7285.9, a two-thirds (2/3) vote of all
members of the City Council is required to place the Measure on the November 8,
2022 ballot; and
WHEREAS, the ordinance to be considered by the qualified voters and the
terms of approval, collection and use of the general sales tax are described and
provided for in the ordinance/measure attached hereto as Exhibit “B” (the
“Measure”) and by this reference made an operative part hereof, in accordance
with all applicable laws.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH:
SECTION 1. Incorporation of Recitals. The foregoing recitals are true and
correct and are hereby incorporated and made an operative part of this
Resolution.
SECTION 2. Submission of Ballot Measure. Pursuant to California Elections
Code section 9222, Government Code section 53724, Revenue and Taxation
Code section 7285.9 and any other applicable requirements of the laws of the
State of California relating to the City, the City Council, by a two-thirds (2/3)
vote of all members, hereby orders the Measure to be submitted to the voters of
the City at the General Municipal Election to be held on Tuesday, November 8,
2022.
SECTION 3. Ballot Measure. The City Council, pursuant to California
Elections Code section 9222, hereby orders that the Measure shall be presented
and printed upon the ballot submitted to the qualified voters in the manner and
form set forth in this Section 3. On the ballot to be submitted to the qualified
voters at the General Municipal Election to be held on Tuesday, November 8,
2022, in addition to any other matters required by law, there shall be printed
substantially the following ballot question:
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To maintain Hermosa Beach’s long-term financial stability
with locally controlled funds, to be used for programs such YES
as public safety/911 response, enforcement against
theft/property crime; street/pothole repair; protection of
beach and coastal waters; support for school safety;
cleaning of public areas; retention/attraction of local
businesses; homeless services and for general NO
governmental use; shall an ordinance be adopted
establishing a ¾¢ sales tax requiring public spending
disclosure/independent audits, generating approximately
$3,000,000 annually until ended by voters?
SECTION 4. Conduct of Election. The City Clerk is authorized, instructed,
and directed to procure and furnish any and all official ballots, printed matter
and all supplies, equipment and paraphernalia that may be necessary in order
to properly and lawfully conduct the election. In all particulars not recited in this
Resolution, the election shall be held and conducted as provided by law for
holding municipal elections.
SECTION 5. Notice of the Election. Notice of the election is hereby given and
the City Clerk is authorized, instructed and directed to give further or additional
notice of the election, in time, form and manner as required by law.
SECTION 6. Placement on the Ballot. The full text of the Measure shall not
be printed in the Sample Ballot Booklet, and a statement shall be printed on the
ballot pursuant to Elections Code section 9223 advising voters that they may
obtain a copy of this Resolution and the Measure, at no cost, upon request made
to the City Clerk.
SECTION 7. Consolidation with Los Angeles County. The City of Hermosa
Beach respectfully requests that the election consolidation services, outlined in
Resolution No. 22-7317, attached hereto as “Exhibit A,” include this measure.
SECTION 8. Filing with County. The City Clerk shall, not later than the 88th
day prior to the General Municipal Election to be held on Tuesday, November 8,
2022, file with the Los Angeles Registrar-Recorder/County Clerk a certified copy of
this Resolution and enter it into the book of original resolutions, including the
Ordinance/Measure attached hereto as “Exhibit B.”
SECTION 9. Public Examination. Pursuant to Elections Code section 9295,
this Measure will be available for public examination for no fewer than ten (10)
calendar days prior to being submitted for printing in the voter information guide.
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The City Clerk shall post notice in the Clerk’s office of the specific dates that the
examination period will run.
SECTION 10. CEQA. The City Council hereby finds and determines that the
Measure relates to organizational or administrative activities of governments that
will not result in direct or indirect physical changes in the environment, and
therefore is not a project within the meaning of the California Environmental
Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5).
SECTION 11. Severability. The provisions of this Resolution are severable
and if any provision of this Resolution is held invalid, that provision shall be
severed from the Resolution and the remainder of this Resolution shall continue
in full force and effect, and not be affected by such invalidity.
SECTION 12. Effective Date of Resolution. This Resolution shall become
effective upon its adoption.
SECTION 13. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Hermosa Beach, California, at a regular meeting held on this 26th day of July, 2022.
Michael Detoy
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA
ATTEST: APPROVED AS TO FORM:
Myra Maravilla Michael Jenkins
City Clerk City Attorney
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State of California ) County of Los Angeles ) ss
City of Hermosa Beach ) July 26, 2022
Certification of Council Action RESOLUTION NO. 22-7327
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA CALLING FOR THE PLACEMENT OF A GENERAL TAX MEASURE ON THE BALLOT FOR THE NOVEMBER 8, 2022 GENERAL
MUNICIPAL ELECTION FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF A LOCALLY CONTROLLED ORDINANCE TO ENACT A GENERAL TRANSACTIONS AND USE TAX (SALES TAX) AT THE RATE OF THREE- QUARTER CENT (¾ ¢) AND REQUESTING THE BOARD OF SUPERVISORS RENDER THE ELECTION CONSOLIDATION SERVICES ADOPTED IN RESOLUTION NO. 22-7317 FOR THIS MEASURE
I, Myra Maravilla, City Clerk of the City of Hermosa Beach do hereby certify that
the above and foregoing Resolution 22-7327 was duly approved and adopted
by the City Council of said City at its regular meeting thereof held on the
26th day of July, 2022 and passed by the following vote:
AYES: MAYOR DETOY, MAYOR PRO TEMPORE JACKSON, COUNCILMEMBERS
ARMATO, CAMPBELL, MASSEY
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
________________________________
Myra Maravilla
City Clerk
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Exhibit “A”
Resolution No. 7317 - Requesting Consolidation Services From
Los Angeles County
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CITY OF HERMOSA BEACH RESOLUTION 22-7317
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY
OF LOS ANGELES TO CONSOLIDATE THE GENERAL MUNICIPAL ELECTION
TO BE HELD ON NOVEMBER 8, 2022 WITH THE STATEWIDE GENERAL
ELECTION TO BE HELD IN THE COUNTY OF LOS ANGELES THE SAME DAY;
TO AUTHORIZE THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS
ANGELES TO CANVASS THE RETURNS OF SAID GENERAL MUNICIPAL
ELECTION; AND TO REQUEST THAT THE REGISTRAR-RECORDER/COUNTY
CLERK OF SAID COUNTY BE PERMITTED TO RENDER FULL SERVICES TO THE
CITY OF HERMOSA BEACH RELATING TO THE CONDUCT OF SAID
GENERAL MUNICIPAL ELECTION PURSUANT TO CALIFORNIA ELECTIONS
CODE SECTION 10403
WHEREAS, a General Municipal Election has been called by the City of
Hermosa Beach to be held in the City of Hermosa Beach on November 8, 2022;
and,
WHEREAS, a Statewide General Election to be held in the County of Los
Angeles has been or will be called to be held on November 8, 2022; and,
WHEREAS, it is desired, pursuant to the authority found in California
Elections Code section 10403, to consolidate said General Municipal Election
with said Statewide General Election to be held in the County of Los Angeles;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Hermosa Beach as follows:
SECTION 1: The Board of Supervisors of the County of Los Angeles is hereby
respectfully requested to order the consolidation of said General Municipal
Election to be held on November 8, 2022, with the Statewide General Election to
be held in the County of Los Angeles on November 8, 2022.
SECTION 2: The Board of Supervisors of the County of Los Angeles is hereby
further respectfully requested to place upon the same ballot as that provided
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for said Statewide General Election to be held in the County of Los Angeles on
November 8, 2022, the names of the candidates for the offices of
Councilmember, Full Term
Councilmember, Full Term
Councilmember, Full Term
to be submitted to the electors of the City of Hermosa Beach at said
General Municipal Election.
SECTION 3: The City of Hermosa Beach acknowledges that the
consolidated election will be held and conducted in the manner prescribed in
Section 10418 of the California Elections Code.
SECTION 4: The Registrar-Recorder/County Clerk of the County of Los
Angele acknowledges that an estimate was given to the City of Hermosa Beach
on the costs of the consolidated election. Should the costs exceed twenty
percent of the estimation, the Registrar-Recorder/County Clerk of the County of
Los Angele will notify the City of Hermosa Beach in writing.
SECTION 5: The Board of Supervisors of the County of Los Angeles is hereby
authorized and respectfully requested to canvass the returns of said General
Municipal Election.
SECTION 6: The Board of Supervisors of the County of Los Angeles is hereby
authorized and respectfully requested to authorize and permit the Registrar-
Recorder/County Clerk of the County of Los Angeles to:
a) Print and supply ballots for said City of Hermosa Beach General
Municipal Election;
b) Mail the City’s sample ballots and candidate statements of
qualifications to the electors of the City of Hermosa Beach as part of the same
material that will be mailed to the voters of the Statewide General Election to be
held in the County of Los Angeles;
c) Perform such other services as may be required for the consolidation
and conduct of said City of Hermosa Beach General Municipal Election with said
Statewide General Election to be held in the County of Los Angeles.
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SECTION 7: The vote centers for the election shall be open as required
during the identified voting period pursuant to California Elections Code sections
4007 and 14401.
SECTION 8: The City shall reimburse the County of Los Angeles in full for the
services performed on behalf of the City upon the presentation of a bill by the
County.
SECTION 9: The City Clerk is hereby directed to deliver a certified copy of
this resolution to the Board of Supervisors of the County of Los Angeles and to
transmit an electronic copy to the Board of Supervisors and the Registrar-
Recorder/County Clerk of the County of Los Angeles.
PASSED, APPROVED and ADOPTED this 14th day of June 2022.
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA
ATTEST: APPROVED AS TO FORM:
Myra Maravilla Michael Jenkins
City Clerk City Attorney
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State of California ) County of Los Angeles ) ss
City of Hermosa Beach )
June 16, 2022
Certification of Council Action
RESOLUTION NO. 22-7317
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY
OF LOS ANGELES TO CONSOLIDATE THE GENERAL MUNICIPAL ELECTION
TO BE HELD ON NOVEMBER 8, 2022 WITH THE STATEWIDE GENERAL
ELECTION TO BE HELD IN THE COUNTY OF LOS ANGELES THE SAME DAY;
TO AUTHORIZE THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS
ANGELES TO CANVASS THE RETURNS OF SAID GENERAL MUNICIPAL
ELECTION; AND TO REQUEST THAT THE REGISTRAR-RECORDER/COUNTY
CLERK OF SAID COUNTY BE PERMITTED TO RENDER FULL SERVICES TO THE
CITY OF HERMOSA BEACH RELATING TO THE CONDUCT OF SAID
GENERAL MUNICIPAL ELECTION PURSUANT TO CALIFORNIA ELECTIONS
CODE SECTION 10403
I, Myra Maravilla, City Clerk of the City of Hermosa Beach do hereby certify that
the above and foregoing Resolution 22-7317 was duly approved and adopted
by the City Council of said City at its regular meeting thereof held on the
14th day of June, 2022 and passed by the following vote:
AYES: MAYOR DETOY, MAYOR PRO TEMPORE JACKSON, COUNCILMEMBERS
ARMATO, CAMPBELL, MASSEY
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
Myra Maravilla
City Clerk
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Exhibit “B”
Transactions and Use Tax Ordinance
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CITY OF HERMOSA BEACH ORDINANCE NO. 22-
AN ORDINANCE OF THE PEOPLE OF THE CITY OF HERMOSA BEACH, CALIFORNIA, ADDING CHAPTER 3.44 TO TITLE 3 OF THE HERMOSA BEACH MUNICIPAL CODE TO ENACT A THREE-QUARTER CENT (3/4¢) GENERAL TRANSACTIONS AND USE TAX (SALES TAX) TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
WHEREAS, pursuant to California Revenue and Taxation Code section 7285.9
the City of Hermosa Beach (“City”) is authorized to levy a Transactions and Use
Tax for general purposes, subject to majority voter approval; and
WHEREAS, the People of the City desire to levy a Transactions and Use Tax for
general purposes until repealed to fund important general City services, at a
rate of three quarter cent (3/4 ¢); and
WHEREAS, if approved by the City Council and Hermosa Beach voters, the
Transactions and Use Tax Ordinance will be incorporated into Chapter 3.44 of
Title 3 of the Hermosa Beach Municipal Code.
NOW, THEREFORE, THE PEOPLE OF THE CITY OF HERMOSA BEACH DO HEREBY ORDAIN AS FOLLOWS:
Section 1. Title and Text. This Ordinance shall be known as the Hermosa
Beach Transactions and Use Tax Ordinance, the full text of which is set forth in
Attachment “1”, attached hereto and incorporated herein by reference.
Section 2. Approval by the City Council. Pursuant to California Government
Code section 53724 and Revenue and Taxation Code section 7285.9, this
Ordinance was duly approved for placement on the ballot by a minimum two-
thirds (2/3) supermajority of all members of the City Council on July 26, 2022.
Section 3. Approval by the Voters. Pursuant to California Elections Code
section 9217, this Ordinance shall be deemed adopted and take effect only if
approved by a majority of the eligible voters of the City of Hermosa Beach
voting at the General Municipal Election of November 8, 2022. It shall be deemed adopted when the City Council has certified the results of that election
by resolution and shall take effect ten (10) days thereafter.
Section 4. Operative Date. “Operative Date” for the Transactions and Use
Tax means the first day of the first calendar quarter commencing more than 110
days after the date this Ordinance is adopted, as set forth in Section 3 above.
Section 5. Severability. If any provision of this Ordinance or the application
thereof to any person or circumstance is held invalid, the remainder of the
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Ordinance and the application of such provision to other persons or
circumstances shall not be affected thereby.
I hereby certify that the Hermosa Beach Transactions and Use Tax
Ordinance was PASSED, APPROVED, AND ADOPTED by the People of the City of
Hermosa Beach on the 8th day of November, 2022.
CITY OF HERMOSA BEACH
MICHAEL DETOY, MAYOR
ATTEST:
MYRA MARAVILLA CITY CLERK
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Attachment 1 Chapter 3.44 - Transactions and Use Tax
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Sections: 3.44.010 - Purpose. 3.44.020 - Contract With State. 3.44.030 - Transactions Tax Rate. 3.44.040 - Place of Sale. 3.44.050 - Use Tax Rate. 3.44.060 - Adoption of Provisions of State Law. 3.44.070 - Limitations on Adoption of State Law and Collection of Use Taxes. 3.44.080 - Permit Not Required. 3.44.090 - Exemptions and Exclusions. 3.44.100 - Amendments. 3.44.110 - Enjoining Collection Forbidden.
3.44.120 - Duration of Tax
Sections:
3.44.010 - Purpose. 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 impose a retail transactions and use tax in accordance with the provisions
of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes
the City to adopt this tax ordinance which shall be operative if a majority of
the electors voting on the measure vote to approve the imposition of the tax
at an election called for that purpose.
B. To adopt a retail transactions and use tax ordinance that 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 1.6 of Division 2 of the
Revenue and Taxation Code.
C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration 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 California Department of Tax and Fee Administration in administering
and collecting the California State Sales and Use Taxes.
D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible,
consistent with the provisions of Part 1.6 of Division 2 of the Revenue and
Taxation Code, minimize the cost of collecting the transactions and use
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taxes, and at the same time, minimize the burden of record-keeping upon
persons subject to taxation under the provisions of this ordinance.
3.44.020 - Contract With State.
Prior to the operative date, the City shall contract with the California
Department of Tax and Fee Administration to perform all functions incident to
the administration and operation of this transactions and use tax ordinance;
provided, that if the City shall not have contracted with the California
Department of Tax and Fee Administration 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.
3.44.030- Transactions Tax Rate.
For the privilege of selling tangible personal property at retail, a tax is hereby
imposed upon all retailers in the incorporated territory of the City at the rate of
three quarters of one percent (3/4 %) of the gross receipts of any retailer from
the sale of all tangible personal property sold at retail in said territory on and
after the operative date of this ordinance.
3.44.040 - 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 California Department of Tax and Fee Administration.
3.44.050 - Use Tax Rate.
An excise tax is hereby imposed on the storage, use or other consumption in the
City of tangible personal property purchased from any retailer on and after the
operative date of this ordinance for storage, use or other consumption in said
territory at the rate of three quarters of one percent (3/4 %) 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.
3.44.060 - 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 1.6 of Division 2 of the Revenue and
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Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) 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.
3.44.070 - Limitations on Adoption of State Law and Collection of Use Taxes.
In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation
Code:
A. Wherever the State of California is named or referred to as the taxing
agency, the name of this City shall be substituted therefor. However, the
substitution shall not be made when:
1. The word “State” is used as a part of the title of the State Controller, State
Treasurer, California Victim Compensation Board, California Department
of Tax and Fee Administration, State Treasury, or the Constitution of the
State of California;
2. The result of that substitution would require action to be taken by or
against this City or any agency, officer, or employee thereof rather than
by or against the California Department of Tax and Fee Administration, in
performing the functions incident to the administration or operation of this
Ordinance.
3. 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:
a. 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;
b. 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 provision of that code.
4. In reference to Sections 6701, 6702 (except in the last sentence thereof),
6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
B. The word “city” shall be substituted for the word “state” in the phrase “retailer
engaged in business in this state” in Section 6203 of the Revenue and
Taxation Code and in the definition of that phrase in Section 6203.
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1. “A retailer engaged in business in the District” shall also include any
retailer that, in the preceding calendar year or the current calendar year,
has total combined sales of tangible personal property in this state or for
delivery in the State by the retailer and all persons related to the retailer
that exceeds five hundred thousand dollars ($500,000). For purposes of this
section, a person is related to another person if both persons are related
to each other pursuant to Section 267(b) of Title 26 of the United States
Code and the regulations thereunder.
3.44.080 - 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 transactor’s permit shall not be
required by this ordinance.
3.44.090 - Exemptions and Exclusions.
A. There shall be excluded from the measure of the transactions tax and the use
tax the amount of any sales tax or use tax imposed by the State of California
or by any city, city and county, or county pursuant to the Bradley-Burns
Uniform Local Sales and Use Tax Law or the amount of any state-
administered transactions or use tax.
B. There are exempted from the computation of the amount of transactions tax
the gross receipts from:
1. Sales of tangible personal property, other than fuel or petroleum products,
to operators of aircraft to be used or consumed principally outside the
county 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.
2. Sales of property to be used outside the City which is shipped to a point
outside the City, pursuant to the contract of sale, by delivery to such point
by the retailer or his agent, or by delivery by the retailer to a carrier for
shipment to a consignee at such point. For the purposes of this
paragraph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to
registration pursuant to Chapter 1 (commencing with Section 4000)
of Division 3 of the Vehicle Code, aircraft licensed in compliance
with Section 21411 of the Public Utilities Code, and undocumented
vessels registered under Division 3.5 (commencing with Section
9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer,
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stating that such address is, in fact, his or her principal place of
residence; and
b. With respect to commercial vehicles, by registration to a place of
business out-of-City and declaration under penalty of perjury,
signed by the buyer, that the vehicle will be operated from that
address.
3. The sale of tangible personal property if the seller is obligated to furnish
the property for a fixed price pursuant to a contract entered into prior to
the operative date of this ordinance.
4. A lease of tangible personal property which is a continuing sale of such
property, for any period of time for which the lessor is obligated to lease
the property for an amount fixed by the lease prior to the operative date
of this ordinance.
5. For the purposes of subparagraphs (3) and (4) of this subsection, the sale
or lease of tangible personal property shall be deemed not to be
obligated pursuant to a contract or lease for any period of time for which
any party to the contract or lease has the unconditional right to terminate
the contract or lease upon notice, whether or not such right is exercised.
C. There are exempted from the use tax imposed by this ordinance, the storage,
use or other consumption in this City of tangible personal property:
1. The gross receipts from the sale of which have been subject to a
transactions tax under any state-administered transactions and use tax
ordinance.
2. Other than fuel or petroleum products 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 the laws of this State, the United States, or any foreign
government. This exemption is in addition to the exemptions provided in
Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State
of California.
3. If the purchaser is obligated to purchase the property for a fixed price
pursuant to a contract entered into prior to the operative date of this
ordinance.
4. If the possession of, or the exercise of any right or power over, the tangible
personal property arises under a lease which is a continuing purchase of
such property for any period of time for which the lessee is obligated to
lease the property for an amount fixed by a lease prior to the operative date of this ordinance.
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5. For the purposes of subparagraphs (3) and (4) of this subsection, storage,
use, or other consumption, or possession of, or exercise of any right or
power over, tangible personal property shall be deemed not to be
obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate
the contract or lease upon notice, whether or not such right is exercised.
6. Except as provided in subparagraph (7), a retailer engaged in business in
the City shall not be required to collect use tax from the purchaser of
tangible personal property, unless the retailer ships or delivers the property
into the City or participates within the City in making the sale of the
property, including, but not limited to, soliciting or receiving the order,
either directly or indirectly, at a place of business of the retailer in the City
or through any representative, agent, canvasser, solicitor, subsidiary, or
person in the City under the authority of the retailer.
7. “A retailer engaged in business in the City” shall also include any retailer
of any of the following: vehicles subject to registration pursuant to
Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle
Code, aircraft licensed in compliance with Section 21411 of the Public
Utilities Code, or undocumented vessels registered under Division 3.5
(commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses
the vehicle, vessel, or aircraft at an address in the City.
D. Any person subject to use tax under this ordinance may credit against that
tax any transactions tax or reimbursement for transactions tax paid to a
district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of
Division 2 of the Revenue and Taxation Code with respect to the sale to the
person of the property the storage, use or other consumption of which is
subject to the use tax.
3.44.100 - Amendments.
All amendments subsequent to the effective date of this ordinance to Part 1 of
Division 2 of the Revenue and Taxation Code relating to sales and use taxes and
which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue
and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of
the Revenue and Taxation Code, shall automatically become a part of this
ordinance, provided however, that no such amendment shall operate so as to
affect the rate of tax imposed by this ordinance.
3.44.110 - 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 the City, or
against any officer of the State or the City, to prevent or enjoin the collection
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under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code,
of any tax or any amount of tax required to be collected.
3.44.120 – Duration of Tax.
The tax imposed by this chapter shall continue until this ordinance is repealed.
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