HomeMy WebLinkAboutCC ORD 1951-826 Use tax (4.24)t�S
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ORDINANCE NO. 826
AN ORDINANCE OF THE CITY OF
NATIONAL, CITY IMPOSING AN'
EXCISE TAX ON TIIE USE OR
OTHER CONSUMPTION OF TAN -
(:IDLE PERSONAL, PROPERTY.
TTII9 CITY COT?NCIT, OF THE CITY
OF NATIONAL CITY DOES ORDAIN
AS POT ,T.OR-S:
SF(rr10X 1. "USE' DEFT NED.
"Use" includes the exercise of any
right or power over tangible personal
Property incident to the ownership of
that property. subject, however, to the
following exetnpt!ons:
(a) It does not include the sale of
that property in the regular course of
business;
(b) it Apes not include the keening,
retaining or exercising of any right or
Power over tangible personal property
shipped or brought into this City and
w'hl, h is thereafter transported Mat -
side the City for principal use or con-
sumption outside the City. and which
property is actually so used or consum-
ed:
(e) It does not include the use of
such prnt•crt y' for the purpose of being
processed. fabricated, or manufactured
into. Mt:wiled to or incorporated Into.
other tangible personal property which
is to be transported outside the City
and thereafter used principally outside
the Ctty, or which is to be subsequent'),
sold or resold in the regular course of
business:
(d) it does not Include the exercise
of any right or power over tangible
personal property incident to owner-
�lTib3p of that property' if such property
was purchased for principal use or
consumption outside the City and 1s so
used or consumed.
(e) It does not Include the use of
ingible personal property a':.rally
employed in the transportation or
.Y transmission of persons. property. gas.
v\J electricity or communications in intra-
Pe state, inter -state or foreign Commerce
by public utilities regulated by the
Public I'li'ities Cornmission of the
St:!te of California.
SUCTION 2. IMPOSITION .AND
, 'RATE OP TAX. An excise tax is
hereby- imposed on the use or other
consumption in the City of National
y w ' City of tangible personal property pur-
l! from, any retailer on or after
effective date of this ordinance for
use or other consumption In said City
at the rate of one-half (tC,) of one (1)
yJ Per centof the sales price of the prop-
"1 y.
yam—/�s FC'riox 3 USE TAX LEVIED TX
" S:1]lE MANNER AS STATE TAX.
,,sV1rhe. tax hereby levied, exr opt as oth-
-0 erw'Ise herein provided, is levied in the
, ,ti same manner, to the same extent and
under the same conditions as use tax-
es are levied pursuant to Part I of Di-
vision 2 of the California Revenue and
Taxation Code. known as the "Sales
:an:'. l'se T-'.x Law" as amended and in
force :and effect on 0 tober 1. 1001.
SECTION 4. ADOPTION OF STATE
USE TAX LAW BY ItEF1;RENCE.
EXCEPTION!,;. All of the provisions
of the "Sales and Use Tax Law" as
amended and in force and effect on
(ACober 1, 1901, exceptthe provisions
thereof pertaining solely to the "Sales
Tax" and Sections 6008, trait to 6204,
inclusive, er207, 6226, 6241 to 6246. In-
clusive, 6403, 64X, 7002, 7(816, 707+7,
7101, 7102, 7151, 7152, and 71:wt. are
hereby adopted and made a part of this
ordinance as Dunrgh fully set forth
herein, and all provisions of any other
ordinance In conflict therewith are In-
applicable to this ordinance and the tax
hereby Unposed: provided that the
term "sales price" shall not Include
the amount of any California. State
sales tax or use tax, and that the word
"storage" shall for the purposes Of
this ordinance be deeenred deleted from
those provisions of the California Rev-
enue and Taxation Code adopted by
reference, It being the intent of the
Council that the tax imposed by this
ordinance shell not apply to the stor-
age of tangible personal property.
All of the provisions of the "Sales
and Use: Tax Law" hereby adopted
proddnig for the adoption of rules and
regulations and for hearings on the
part of the State Board of Equaliza-
tion shall be performed by the Coun-
cil of the City- of National City. A/I
other provisions of the State "Sales
and Use Tax Law" hereby adopted
providing for the performanee of of-
ficial act tor. on the part of the State
Board of Equalization shall be per-
formed by the City Clerk,
The City of National C`.ty shall he
deemed substituted for the State of
California whenever the State is re-
ferred to in said "Sales and Use Tax
Law."
The City Attorney of the City of
National City shall he deemed substi-
tuted for the Attorney General when-
ever the; Attorney General Is referred
to in said "S:ales and Use Tax Law."
The City Manager shall be deemed
substituted for the State Controller and
S'atc I'oa rd of Control whenever the
State Cortrol'er or State Board of
Control are referred) to in said "Sales
and Use 'r::x Lew:'
The County of San Diego shall he
,'er•r-ed substituted for the County of
S-.cranlento whenever the County of
Sacramento Is referred to in sai,i
''Sags and I'se Tax Law."
SECTION 5..Ai:OPTION OF RULES
AND NT'C4CL..ATTOXS RY REFER-
ENCE. ('I:. The rules and regulations of
the Vats Board of Equalization per-
t'ir,ing to the Interpretation, admin-
istration and en.foreemcnt of the "Sales
and Use Tax Law," insofar as aPplica-
hle, shall apply to the interpretation
of this ordinance until specific:eily
abandoned by the rules and regula-
tions adopted by the Council pursuant
to this ordinance.
SECTION (1. INTERPRETATION.
The inclusion of any clause, portion
of tart of the "Sates and ('see Tax
Law". Cart 1, Division 2 of the Rev-
enue rind Taxation Code of the State
of Califon -Ca. verbatim in this ordi-
nance shall not in or of itself be deem-
ed to exclude any of the remaining
Provisions of said "Salts and Use Tax
La..w" that are made a Part hereof by
reference only.
SI.X'T)ON 7. DUTY T() COLLECT
TAX. Every retailer maintaining a
place of business in this City shall
apply to the City Clerk for author!za-
tion to collect the tax imposed by this
ordinance. Any retailer not maintain-
ing a place of business in this City
may apply to the City Clerk for au-
thorization to collect the tax hereby
introaed. Upon receipt of any appld-
eatirn in such form as required by
ham, the City Clerk, in the case of a
retailer maintaining, a place of busi-
ness in City. shall authorize. and In
the ease of a retailer not maintaining a
place of business in the City. may au-
thorize the applicant to make such
eollecti•'ns art to forward the same
to the City Clerk.
S':c'rIox S. PERSONS LIABLE TO
T.)X. I:.ery person using or other-
wise consuming in this City tangible
personal property purchased from a re-
tainer, is liable for the tax: provided•
however. no tax s)•al he due hereun-
der if the tax imposers by Ordinance
No. 726 as amended of the City of Na-
tional City has been paid on the sale
of such property. The liability of su:h
person is not extinguished until the
tau has been paid to the City of Na-
tional City except that a receipt from
a retailer authorized pu rsua n1 to Seee-
tio❑ 7 hereof to collect the tax. given
to the purchaser pursuant to Section
9 hereof. Is sufficient to relieve the
purchaser from further liability for
the tax to which the reeeint refers.
SECTION 9. COLLECTION OF TAX
BY RETAILER. Every retailer who
is authorized by the City Clerk to co1-
leet the tax imposed by this ordinance
and who makes sales of tangible per-
sonal property for use or other con-
sumption in this City. not exempted
under the provisions of this ordinance,
shall collect the tax from the purchas-
er at the time of making the sale, or,
1f the use or other consumption of the
tangible personal property is not then
taxable hereunder, at the time the
use or other consumption becomes
taxable. Upon collecting the tax, the
retailer, on demand, shall give to the
purchaser a receipt therefor in the
manna.' and fora prescribed by the
City (jerk. The tax so collected by
the retailer shall be held in trust by
him for the City and shall be paid
to the City by the retailer in the
manner :old at the times elsewhere pro-
vided In this ordinance.
S3,('TTDN M. SEPARATE. DISPLAY
OF 'r AX FROM LIST OR (yrIlElt
PRICE. The tax so collected by the
re:ailer from the purchaser shall be
c'ispl:a. ed separately from the list Price,
the price advertised in the premises.
the marked price or other price on the
saes . he.•k or other proof of sale.
St'CTION 11. PERSONAL PROP-
ERTY TO R"HIC13 TAX APPLIES.
Iixeept as otherwise specifically ex-
empted, the tax hereby imposed applies
to all tangible personal property lo-
cated in this City :and purchased from
a retailer: provided, however, that if
the retailer in good faith takes from
the purchaser a certificate th at the
r'r•lperty was pun hosed prior to the
effective date of this ordinance or was
' purchased for ose or consumption
in this City and has not been nor will
be so used Or consumed, he shall be
r^'ie' ,'d of liability to collect and Pay
the tax. The certificate shall be sign-
(1 by and boar the name of the pur-
rhase:', ,shall indicate the address of
the par' baser and the place where such
tangible personal property Tell/ he used
or consumed, the date of purchase,
and s}r•ll he substantially In such form
as the Cat, Clerk mac prescribe.
SECTION 12, EXFM1'TIONS, In
a d dittos to those exemptions contain-
ed in Part 1 of Division 2 of the Cali-
fcrria Revenue and Taxation Code
which 'Inc in •urporated Into this nrdi-
rr:mre be roferrnco, there shall be ex -
eluded from the computation of the
tax this sales prieee of:
(a.) Purchases made ha' the State of
California or by any agency, depart-
ment, political subdivision, district or
municipal corporation thereof:
(h) Purchases of tangible personal
property to be used In connection with
the ere -tiara, construction, repair or
a't'•rntlon of ell hr r public works or
buildings belonging to or being con-
structed by or on behalf of or for the
of the United States Government,
the crate of California or any agency,
ilepartmont. political subdivision, dis-
trict or Public or municipal corpora-
tion of the State:
(c) Purchases made pursuant to cnn-
tr..ety artua'ly executed in good faith
prior to November 1, 1951:
Ill Purchases of property Upon
which a sales tax, purchase tax. use
tax. purchase anti use tax, or any of
th'•m, has been legally imposed by and
paid on the state transaction to any
, it•' of the State of California.
shr'rloN 13, Ith:OISTRATION OF
ItET1tL14HS. Every retailer selling
tangible personal property for use or
other consumption in the City of Na-
t! nal City and which retailer main-
tains a place of business in said city
•' acts through agents located in said
city and which retailer Is not licensed
ender the provisions of Ordinance No,
726 as ::mended, shall register with
the City Clerk and give the name and
aW, rtss of such agent or agents and
office or other place of business in the
Ci'v.
SECTION 14. DUE DATE OF TAX-
ES. Taxes imposed by this ordinance
are due and payable to the City Clerk
on or before the last day of the
month next snroeeding each quarterly
period, the first quarterly payment to
be due and payable under this orcti-
Itanre on or before the last day of
January. 19,2. The City Clerk may
require returns and payment of the
amount of taxes for quarterly periods
other than calendar quarter's depend-
ing upon the principal place of or the
nature of the business of the seller
or retailer or may require returns and
702 ea
payment of the nmunt of taxes for
other than quarterly periods.
SECTION 15. RETURNS. Each re-
turn filed by a retailer shall show the
total sale price of the property sold
by him during the reporting period
in respect of which he collected the
tax hereby imposed. Each return filed
by a purchaser shall show the total
sale price of the property purchased
by him during the reporting period. in
respect of which a tax Ls due under
this ordinance. All returns shall also
show the amount of the taxes for the
Period covered by the return and such
other information as the City Clerk
deems necessary to the proper admin-
istration of this ordinance.
SECITTON 1G. EXTFIKSION OF
TIME. W AI VEP. OR COM I'ROMJ SE.
The City Clerk shall have power, for
good cause shown, to extend for a. per -
of not to exceed thirty-one (31)
days the time for making any re-
turn or paying any amount required to
be pale] under this ordinance, when re-
quested so to clo in writing. before the
same becomes delinquent. The City
Clerk may, with the written approval
of the City Attorney, waive or com-
promise any penalty or Interest that
would otherwise accrue under the pro-
visions of this ordinance. The City
Clerk shall make and traesndt to the
Council quarterly, a detailed report
of any sum: so waived or compromised
with the reasons therefor.
SECTION 17. SCIIEDULES FOR
PAYMENT OF TAX. The Council. by
resolution. shall adopt rules prescrib-
ing methods and schedules for the
collection and payment of t.he tax. Such
schedules shall be so determined as to
facilitate co:lection of this tax at the
same tune that the retailer collects the
tax imposed under the California Sales
and Use Tax Law and so a-s to produce
an average tax return of one-half of
one per cent (i of 1%) on all pur-
chases subject to the use tax.
SECTION 18. sT;IT FOR TAX. All
taxes hereby levied shall be payable to
the City Clerk and any civil suit for
the collection thereof rosy be filed
in any court of competent jurisdiction
in the State of California, and the
City Attorney of said City shall pros-
ecute the action.
SECTION 19. RESALE: (n•a{TIF'1-
CATE. The City Clerk may at his
option accept a State of California. Re-
sale Certificate as evidence that any
sale is not a. sale for use or consump-
tion in the City of National City, or
he may in his discretion require an
affidavit from the seller setting forth
such information respecting such sale
a, he deems necessary to determine
the nature of such sale.
SECTION 20. DISPOSITION OF
PROCEEDS. All monies collected un-
der and pursuant to the provisions of
this ordinance shall be deposited and
paid into the General Fund of the
('Ity of National City.
SECTION 21. DIVULGING OF IN-
FORMATION FORP.II)DEN. No offi-
cer or employee of the City of National
City having an administrative duty
under this ordinance shall make known
in any manner whatever the business
affairs, operations, or information ob-
tained by an Investigation of records
and equipment of any retailer or any
other person visited or examined in
the discharge of official duty, or the
amount or source of Income, profits.
losses, expenditures, or any particu-
lars thereof, set forth or disclosed an
any return, or permit any return or
copy thereof or any book containing
any abstract or particulars to be seen
or examined by any person. However,
the Council may, by resolution, au-
thorize examination of the returns by
Federal or State offieers or employees
or by the tax officers of this or any
other city if a reciprocal arrangement
exists. Successors, receivers, trustees,
executors, administrators, assignees,
and guarantors. If directly Interested,
may be given information as to the
items included in the measure and
amounts of any unpaid tax or amounts
of tax required to be collected, interest
and penalties.
SECTION 2'2. FA.TSE ANT) FRAUD-
1'LEN'I' RI•:TUILN.. No person requir-
ed to make, render, sign or verify any
report under the provisions of this
ordinance, shall make any false or
fraudulent return, with intent to de-
feat or evade the determination of an
amount due and required to be paid
hereunder.
SECTION 23. FAILURE TO MAKE
RETURN OR FURNISH DATA. No
retailer or other person shall fail or
refuse to furnish any return required
to be made or fail or refuse to furnish
a supplemental return or other data re-
quired by the City Clerk, or render a
false or fraudulent return.
SECTION 24. PENAL PROVISIONS.
Any person violating any provision of
this ordinance shall be guilty of a mis-
demeanor, and upon conviction thereof
shall be punishable by a fine of not
more than Five Hundred Dollars
(S500.00). or by Imprisonment in the
City Jail of the City of National City
or the County Jail of the County of
San Diego for a period of not more
than six (0) months or by both such
fine and such imprisonment.
SECTION 25. VALIDITY. If any
section. subsection. sentence. clause.
phrase, or portion of this ordinance
Is for any reason held to be Invalid
or unconstitutional by the deelslon of
any court of competent jurisdiction,
such decision shall not affect the va-
lidity of the remaining portions of this
ordinance. The Council of this City
hereby declares that It would have
adopted this ordinance and each sec-
tion. subsection, sentence. clause,
Phrase, or portion thereof, Irrespective
of the fact that any one or more sec -
lions. subsections, sentences, Clauses,
phrases or portions be declared Inval-
id or unconstitutional.
SECTION 20. EFFECTIVE DATE.
This ordinance. Inasmuch as It provides
for a tax levy for the usual current
expenses of the city. shall. under the
provisions of Section 1 of Article IV
of the Constitution, take effect imme-
diately, provided. however, that the
provisions of SECTION 2 shall become
and be operative November 1, 1951.
I'ASSI•:U AND ADOPTED by the
City Council of t.he Ctiy of National
City, California. this 9th day of Octo-
ber. 1931. by the following vote, to -
wit:
AYES: Councilmen Clarke, Curry,
Ingalls. Carrigan.
NAYS; Councilmen None.
ABSENT: Hart.
MAURICE CAR.RIGA.N,
Mayor of the City of
National City. California.
ATTEST: Irene M_ Alston,
City Clerk.
1 hereby approve the foregoing Or-
dinance this 9th day of October, 19:51.
MAI-RICE CARRIGAX,
Mayor of the City of
National City, California.
I hereby certify- that the above and
foregoing Is a. full and true copy of
Ordinance No. S20 of the Ordinances
of the City of National City, Califor-
nia, as adopted by the City Council
of said City(. :and hpproved by the
Mayor of saiclCity on tho_f(th day
October, 1931.
(Signer in -. at: AI
City Clerk of the City of
National City California.
(STEAL)
News 11. Oct. 12, Jno. 2750.
AND I HEREBY CERTIFY that
the s:nt T5 been duly publLahed ac-
cordlnlg to lap'.
City Clerk. City of
National City. California.