Ordinance No. 363 - Sales and Use Taxi ~ •
ORDINANCE N0.363
AN ORDINANCE IMPOSING A SALES AND USE
TAX TO BE ADMINISTERED HY THE STATE
BOARD OF EQUALIZATION AND PROVIDING
PENALTIES FOR VIOLATIONS AND APIENDING
THE ROSEMEAD MUNICIPAL CODE.
THE CITY COUNCIL OF THE CITY OF ROSEfdEAD DOES ORDAID] AS FOLLO6aS t
A new Chapter One (1) of Article Six (6) of the Rosemead Municipal
Code is hereby adopted to read:
SECTION 6100. SHORT TITLE. This Ordinance shall be known as the
Uniformrm o~SaTes and Use Tax Ordinance.
SECTION 6101. RATE. The rate of sales tax and use tax imposed
by this Ordinance shall be one percent (1~).
SECTION 6102. OPERATIVE DATE. This Ordinance shall be operative
on January 1, 1974.
SECTION 6103. 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 uae 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 same time minimize the burden of record
keeping upon persons subject to taxation under the provisions
of this ordinance.
SECTION 6104. CONTRACT WITH STATE. Prior to the operative date '
this C1ty 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 Hoard 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 contract rather than the first day of the first calendar quarter
following the adoption of this ordinance.
SECTION 6105. 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 6101 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.
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Ordinance No. 363
SECTION 6106. 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, cahen 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.
SECTION 6107. USE TAX. 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 for
storage, use or other consumption in this City at the rate stated in
Section 6101 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. 6108. 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
of the Revenue and Taxation Code are hereby adopted and made a part of
this ordinance as though fully set forth herein.
SECTION 6109. LIPIITATIOPQS ON ADOPTION OF STATE LAt9. 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 Constj.tution 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 t
provide an exemption from this tax with respect to certain sales, storag
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 Stat
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 "retai
engaged in business in this"State"in Section 6203 or in the definition
of that phrase in Section 6203.
SECTION 6110. PER!!IT 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 6111. EXCLUSIONS ARID 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.
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(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.
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ordinance No. 363
(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 •ased or consumed in the
operation of such common carriers or waterborne vessels, prin-
cipally outside this City.
(d) The storage or use of tangible personal property in the trans-
portation or transmission of persons, property or communications,
or in the generation, transmission or distribution of electricity
or in the manufacture, 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 6112. EXCLUSIONS AND EXEA'lPTIONS.
(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 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 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 the laws
of this state, the United States, or any foreign government is
exempted from the use tax.
SECTION 6113. 11PPLICATION OF PROVISIONS RELATING TO EXCLUSIONS AND
EXEMPTIONS.
(a) Section 6112 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 6111 of this ordinance
shall become inoperative.
(b) In the event that Section 6112 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,
,.
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Ordinance No. 3~
Section 6111 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 6112 of this
ordinance shall be inoperative until the first day of the
month following the month in which the Boar3 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 6112 shall
again become operative and Section 6111 shall become inoper-
ative.
SECTION 6114. P,P7ENDMENTS. 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 6115. ENJOINING COLLECTIOP7 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 1.5 of Division 2 of the Revenue
and Taxation Code, of any tax or any amount of tax required to be collected.
SECTION 6116. 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 6117. 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 6116. REPEALS. Present Chapter 1 of Article VI of the
Rosemead f4unicipal Code entitled "Uniform Local Sales and Use Tax
Ordinance is hereby repealed; provided, however, that said Chapter shall
remain applicable for the purposes of the administration of said Chapter 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 Chapter.
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PASSED, APPROVED, AND ADOPTED THIS ~_DAY OF OCTOBER, 1973.
d~i~~~
T_~YOR OF THE CITY OF ROSEfQEAD
ATTEST:
C Y CL RK