Ordinance No. 002 - Imposing a City Sales and Use TaxORDINANCE NO. t
AN ORDINANCE OF THE CITY OF ROSEMEAD IMPOSING A CITY
SALES AND USE TAX; PROVIDING FOR THE PERFORMANCE BY
THE STATE BOARD OF EQUALIZATION OF ALL FUNCTIONS IN-
CIDENT TO THE ADMINISTRATION, OPERATION AND COLLEC-
TION OF THE SALES AND USE TAX HEREBY IMPOSED; PROVID-
ING PENALTIES FOR VIOLATIONS THEREOF, AND AMENDING
THE MUNICIPAL CODE.
THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES ORDAIN AS FOL-
LOWS:
SECTION 1: AMENDING MUNICIPAL CODE.
Chapter 1 is added to Article VI of the Rosemad Municipal
' Code, the sections of which shall read as follows:
"SECTION 6100. Short Title.
This Ordinance shall be known as the Uniform Local Sales
and Use Tax Ordinance of the City of Rosemead.
SECTION 6101. Purpose.
The City Council of the City of Rosemead hereby declares
that this Ordinance is adopted to achieve the following, a-
mong other, purposes, and directs that the provisions there-
of 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 of the State of California;
(b) To adopt a sales and use tax ordinance which in-
corporates 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 require-
ments and limitations contained in Part. 1.5 of Division
2 of the said Revenue and Taxation Code;
(c) To adopt a sales and use tax ordinance which im-
poses a one percent (1%) tax and provides a measure
therefore that can be administered and collected by the
State Board of Equalization in a manner that adapts itself
as fully as practical to, and requires the least possible
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deviation from, the existing statutory and administra-
tive procedures followed by the State Board of Equal-
ization 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 ma.incr that will, to the degree
possible consistent with t'-.e provisions of Part 1.5 of
Division 2 of the said. Revenue and `.Paxation Code, minim-
ize 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;
(e) To adopt a sales and use tax ordinance which
can be administered in a manner that will exclude the
receipts of particular sales from the measure of the
sales tax imposed by this City which have been included
in the measure of the sales tax imposed by any other
city and county, county other than the county in which
this city is located, or city in this State, and avoid
imposing a use tax on the storage, use or other consump-
tion of tangible personal property in this City when
the gross receipts from the sale of, or the use of,
that property has been subject to a sales or use tax by
any other city and county, county other than the county
in which this city is located, or city in this State,
pursuant to a sales and use tax ordinance enacted under
the provisions of Part 1.5 of Division 2 of the said
Revenue and Taxation Code.
SECTION 6102. Operative Date. Contract with State.
This Ordinance shall become operative on
and prior thereto 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 con-
tracted with the said State Board of Equalization, as above
set forth, prior to Ocher /y-5--
9 this Ordinance shall
not be operative until the first day of the calendar quarter
following the execution of such a contract by the City and by
the State Board of Equalization, provided further that this
Ordinance shall not become operative prior to the operative
date of the Uniform Local Sales and Use Tax Ordinance of
the County of Los Angeles.
SECTION 6103. Sales Tax.
(a) (1) For the privilege of selling tangible personal
property at retail a tax is hereby imposed upon all re-
tailers in the city at the rate of one percent (l%) of
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the gross receipts of the retailer from the sale of all
tangible personal property sold at retail in the City
of Rosemead, on and after the operative date of this
Ordinance.
(2) For the purposes of this Ordinance, all re-
tail sales shall be presumed to have been consummated
at the place of business of the retailer unless the
tangible personal property sold is delivered by the re-
tailer or his agent to an out-of-state destination or
to a common carrier for delivery to an out-of-state
destination. Delivery charges shall be included in the
gross receipts by which the tax is measured, regardless
of the place to which delivery is made, when such charges
are included in the measure of the sales or use tax im-
posed by the State of California. In the event a retail-
er has no permanent place of business in the State of
California, or has more than one place of business, the
place or places at which retail sales are consummated
shall be as determined under rules and regulations pre-
scribed and adopted by the Board of Equalization.
(b) (1) Except as hereinafter provided, and except in-
sofar as they are inconsistent with the provisions of
Part 1.5 of Division 2.of the said Revenue and Taxation
Code, all of the provisions of Part 1 of Division 2 of
said Code, as amended and in force and effect on
~GZO6er / /qs-9 , applicable to sales taxes are
hereby adopted find/made a part of this section as though
fully set forth herein.
(2) Wherever, and to the extent that, in Part 1 of
Division 2 of the said Revenue and Taxation Code the
State of California is named or referred to as the taxing
agercy, the City of Rosemead shall be substituted there-
for. Nothing in this subdivision shall be deemed to
require the substitution of the name of the City of
Rosemead for the word "State" when that word is used as
part of the title of the State Controller, the State
Treasurer, the Stage Board of Control, the State Board
of Equalization, or the name of the State Treasury, or
of the Constit-c..lon of the State of California; nor shall
the name of the City be substituted for that of the State
in any sect .on 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; and
neither shall the substitution be deemed to have been
made in those sections, including, but not necessarily
limited to, sections referring to the exterior boundaries
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of the State of California, where the result of the
substitution would be to provide an exemption from
this tax with respect to certain gross receipts
which would not otherwise be exempt from this tax
while those gross receipts remain subject to tax by
the State under the provisions of Part 1 of Division
2 of the said Revenue and Taxation Code; nor to im-
pose this tax with respect to certain gross receipts
which would not be subject to tax by the State under
the said provisions of that Code; and, in addition,
the name of the City shall not be substituted for that
of the State in Sections 6701,6;02 (except in the last
sentence thereof), 6711, 6715, 6737, 6'197 and 6828 of
the said Revenue and Taxation Code as adopted.
(3) If a seller's permit has been issued to a
retailer under section 6068 of t'o.e said Revenue and
Taxation Code, an additional seller's permit shall
not be required by reason of this section.
(4) There shall be excluded from the gross re-
ceipts by which the tax is measured:
(i) The amount of any sales or use tax im-
posed by the State of California upon a retailer
or consumer.
(ii) Receipts from the sale of tangible per-
sonal property upon which a sales or use tax has
become due by reason of the same transaction to
any other city and county, county other than the
county in which this city is located, or city in
this State under a sales or use tax ordinance
enacted by that city and county, county other
than the county in which this city is located, or
city in this State in accordance with Part 1.5 of
Division 2 of the said Revenue and Taxation Code.
(iii) Receipts from sales to operators of com-
mon carrier and waterborne vessels of property to
be used or consumed in the 'operation of such common
carriers or waterborne vessels principally outside
of this City.
SECTION 6104. Use Tax.
(a) An excise tax is hereby imposed on the storage, use
or other consumption in the City of Rosemead of tangible
personal property purchased from any retailer on or after
the operative date of this Ordinance, for storage, use or
other consumption in the City at the rate of one percent
4.
(1%.) of the sales price of the property. The sales
price shall include delivery charges when such charges
are subject to Stste sales or use tax regardless of the
place to which delivery is made.
(b) (1) Except as hereinafter provided, and except
insofar as they are inconsistent with the provisions of
Part 1.5 of Division 2 of the said Revenue and Taxation
Code, all of the provisions of Part 1 of Division 2 of
said Code, as amended and in force and effect on Och6ef-
/iigSq applicable to use taxes are hereby adopted and
made a part of this section as thougli fully set forth
herein.
(2) Whenever, and to the extent that, in Part 1
of Division 2 of the said. Revenue and Taxation Code the
State of California is named or refe:Irad to as the tax-
ing agency, t'_e City of Rosemead small be substituted
therefor. Nothing in this subdiv".sion shall be deemed
to require the substitution of the name of the City of
Rosemead for the word "State" when that word is used as
part of the title of the State Controller, the State
Treasurer, the State Board of Control, the State Board
of Equalization, or the name of the State Treasury, or
of the Constitution of the State of California; nor shall
the name of the City be substituted for that of the State
in any section 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; and
neither shall the substitution be deemed to have been
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 sub-
stitution would be to provide an exemption from this tax
with respect to certain storage, use or other consump-
tion of tangible personal property which would not other-
wise be exempt from this tax while such storage, use or
other consumption remains subject to tax by the State
under the provisions of Part 1 of Division 2 of the said
Revenue and Taxation Code, or to impose this tax with
respect to certain 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; and in addition, the name of the City shall not be
substituted for that of the State in Sections 6701, 6702
(except `.1 the last sentence thereof), 6711, 6715, 6737,
b79'i and 6828 of the said Revenue and Taxation Code as
adopted.
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(3) There shall be exempt from the tax due under
this section:
(1) The amount cf any sales or use tax im-
posed by the State of California upon a retailer
or consumer.
(ii.) ^~ie storage, use or other consumption
of tang4.ble bersonal pro.Gert,y, the gross receipts
from tae sale of or the cost of wlli.ch has been sub-
ject to sales or use tax crdinaance enacted in ac-
cordance w _th Part 1.5 of `Di.visa.on 2 of the said
Revenue and. 5.axati.on. Code by atrY other city and
county, county cth-~r than the c linty in which this
city is locatzd, or c_.ty in Liii-s 6'11-at2.
4 (iii) [ire storage or u e of ts.r.,gibl.e personal
property in tale tra.:et:c,rtatl un o .-L, transml scion of
persons, property, or or in ti:e
generation, transm;.ss -l on oi, d_ stributio.z of elec-
tric!-',s or in the manu.facLure, tra.n;.miss .on or dis-
tri.butiIn of gas in intrastat-, interstate or
foreigai con:n.er.ce by public uti.li'ties whi.rh are
regulated by th.e Public Utilities Co mi_ssicn of the
State of California.
(iv) The use or consumption of property pur-
chased by operators of common car:rial's and water-
borne vessels to be usr.d. or consumed in the opera-
tion of siuch coirLnon carriers or waterborne vessels
principally outside the City.
40 SECTION F105. Amend.; c. is .
All amendments of the sa..d Revenue and Taxation Code en-
acted subs:iue.nt t? the effective date of this Ordinance which
relate to the sales an't use tax and ihi.ch are not inconsistent
with Part 1.5 of D'i.'ri.si.on 2 of the said P.evenue and Taxation
Code shall automat:ically become a part of this Ordinance.
SECTION 6106. Enjotn..ng Collection Forbidden.
No injunction or writ of mandate or other legal or equit-
able 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
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of the Revenue and Taxation Code, of any tax or any amount
of tax required to be collected.
SECTION 6107. Penalties.
Any person violating any of the provisions of this Ordin-
ance shall be deemed guilty of a misdemeanor, and upon convic-
tion thereof shall be punishable by a fine of not more than
$500, or by imprisonment for a period of not more than six
(6) months in the City or County Jail, or by both such fine
and imprisonment.
SECTION 6108. Severability.
J
If any section, subsection, sentence, clause, phrase or
portion of this Ordinance, including but not limited to any
exemption, is for any reason held to be invalid or unconsti-
tutional by the decision of any court of competent jurisdic-
tion, such decision shall not affect the validity of the re-
maining portions of this Ordinance. The Council of the City
of Rosemead hereby declares that it would have adopted this
Ordinance and each section, subsection, sentence, clause,
phrase or portion thereof, irrespective of the fact that any
one or more sections, subsections, sentences, clauses,
phrases or portions be declared invalid or unconsitutional."
SECTION 2: EFFECTIVE DATE.
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Pursuant to the provisions of Section 36937(e) of the Govern-
ment Code of the State of California, this Ordinance shall take ef-
fect immediately as it is an Ordinance which fixes the rate of tax-
ation and was adopted at a regular meeting of the City Council of the
City of Rosemead. The City Clirk shall ca.:se copies of this Ordinance
to be posted in three (3) public places within the city limits of
the City of Rosemead as prescribed pursuant to the provisions of
Chapter 8 of Article II of the Rosemead Municipal Code.
PASSED AND ADOPTED by the City Council of the City of Rosemead
at a regular meeting thereof held this__Z.? day of %u us 1959 by
the following-called vote:
AYES: COUNCILDA.EN:irchp~, C„E~ ~otd~ ey
aStcad, W///Q7-nsvyi
NOES: COUNCILKEN: /Vy7i e
ABSENT: COUNCILMEN: /Vo77~
ATTEST:
9 MAYOR OF C CTY OF OSEMEAD
~rv~e~.,~ sue`
CITY CLERIC OF THE CITY O ROSEMEAD