HomeMy WebLinkAboutCC ORD 2006-2278 Adds [amends] Ch. 4.60, transactions and use tax (4.60)ORDINANCE NO. 2006 — 2278
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY ADDING
CHAPTER 4.60 TO THE NATIONAL CITY MUNICIPAL CODE
TO IMPOSE A TRANSACTIONS AND USE TAX TO BE
ADMINISTERED BY THE STATE BOARD OF EQUALIZATION
BE IT ORDAINED by the People of the City of National City as follows:
Section 1. That Title 4 of the National City Municipal Code is hereby amended by
adding Chapter 4.60 to read as follows:
Chapter 4.60
TRANSACTIONS AND USE TAX
Sections:
4.60.010 Title
4.60.020 Definitions
4.60.030 Operative date
4.60.040 Purpose
4.60.050 Contract with State Board of Equalization
4.60.060 Transactions tax rate
4.60.070 Place of sale
4.60.080 Use tax rate
4.60.090 Adoption of provisions of state law
4.60.100 Limitations on adoption of State law and collection of use taxes
4.60.110 Permit not required
4.60.120 Exclusion; exemptions
4.60.130 Permissible uses
4.60.140 Amendments
4.60.150 Enjoining collection forbidden
4.60.160 Severability
4.60.170 Expiration
4.60.180 Independent committee
4.60.010 Title. This chapter shall be known as the "City of National City
Transactions and Use Tax Ordinance". This ordinance shall be applicable in the
incorporated territory of the City.
4.60.020 Definitions. As used in this chapter, "City" means the City of National
City and "tax" means the transactions and use taxes, sometimes also referred to as "sales
tax", imposed under the provisions of this ordinance; "tax revenue" and "tax revenues"
mean all proceeds of the tax received by the City from the State Board of Equalization.
4.60.030 Operative date. "Operative date" means the first day that the tax is
imposed and collected. The operative date shall be October 1, 2006, unless a later
operative date becomes effective under the provisions of Section 4.60.050.
4.60.040 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 vote 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 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 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 taxes, and at the same time, minimize the burden of record keeping
upon persons subject to taxation under the provisions of this ordinance.
4.60.050 Contract with State Board of Equalization. Prior to the operative date,
the City shall contract with the State Board of Equalization 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 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.
4.60.060 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 1 % (one percent) 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.
4.60.070 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.
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4.60.080 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 1 % (one percent) 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.
4.60.090 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 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.
4.60.100 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, State Board of Control, State Board of Equalization, 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
State Board of Equalization, 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 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 and in the definition of that phrase in
Section 6203.
4.60.110 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.
4.60.120 Exclusion; exemptions. 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-
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Bums 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, 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 B, 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.
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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.
5. For the purposes of subparagraphs 3 and 4 of this subsection C,
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 of this subsection C, 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.
4.60.130 Permissible uses. The revenues of the tax shall be deposited in the
City's general fund and may be used for any legal municipal purpose.
4.60.140 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.
4.60.150 Enioininq 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 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.
4.60.160 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.
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4.60.170 Expiration. The authority to levy the tax imposed by this Chapter
shall expire ten (10) years from the Operative Date, unless the City Council prior to that
date determines that the levy and collection of the tax is no longer necessary, in which case
the City Council has the authority to reduce the rate of tax, or to terminate the imposition of
the tax. The City shall immediately notify the State Board of Equalization in writing in the
event that the tax is reduced or terminated. The operative date of such rate reduction or
termination shall be the first (1st) day of the first (1st) calendar quarter commencing more
than one hundred and ten (110) days after the Board of Equalization receives such notice of
termination.
4.60.180 Independent committee. Every five (5) years the Mayor, with approval
of the City Council, shall appoint an independent committee comprised of three (3) experts
in financial matters, who will report their recommendations to the Mayor and City Council as
to whether the transaction and use tax should remain in effect at the rate of one percent
(1 %), or whether the City Council should reduce the rate of tax or terminate the imposition
of the tax pursuant to Section 4.60.170.
Section 2. This ordinance, following its adoption by at least 4 affirmative votes of
the City Council and its publication, shall become effective upon the approval of the tax
imposed hereunder by a majority of the voters of the City voting thereon at an election
called for that purpose. The "operative date" of the tax imposed hereunder shall be as
provided in Section 4.60.030.
PASSED and ADOPTED this 7th day of February, 2006.
ATTEST:
.pia....
Mic ael R. 'alla City Clerk
APPROVED AS TO FORM:
George H. Eiser, III
City Attorney
Lo/
Nick'1nzunza, Mayor
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Passed and adopted by the Council of the City of National City, California, on
February 7, 2006, by the following vote, to -wit:
Ayes: Councilmembers Inzunza, Morrison, Natividad, Parra, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY:
NICK INZUNZA
Mayor of the City, of National City, California
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City CIrk of the City oational City, California
By:
Deputy
I HEREBY CERTIFY that the foregoing ordinance was adopted on February 7, 2006,
under the provisions of Section 36937 of the California Government Code.
I FURTHER CERTIFY THAT said ordinance was read in full prior to its final passage or
that the reading of said ordinance in full was dispensed with by a vote of not less than a
majority of the members elected to the Council and that there was available for the
consideration of each member of the Council and the public prior to the day of its
passage a written or printed copy of said ordinance.
I FURTHER CERTIFY that the above and foregoing is a full, true and correct copy of
ORDINANCE NO. 2006-2278 of the City Council of the City of National City, passed
and adopted by the Council of said City on February 7, 2006.
City Clerk of the City of National City, California
By:
Deputy