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HomeMy WebLinkAbout20 - Sales Tax (Suspended by Ord. 116)ORDINANCE NO. 2c. AN ORDINANCE OF THE CITY OF COSTA 1,1ESA IMPOSING A LICENSE TAX FOR THE PRIVILEGE OF SELLING TANGIBLE PERSONAL PROPERTY AT RETAIL, PROVIDING FOR PERMITS TO RETAILERS, PROVIDING FOR THE COLLECTION AND PAYING OF SUCH TAX, AND PRESCRIBING PENALTIES FOR VIOLATIONS OF THE PROVISIONS HEREOF. The City Council of the City of Costa Mesa does ordain as follows: Section 1. DEFINITIONS. Wherever used in this ordinance, the following words shall have the meanings indicted: "City Council" shall mean the City Council of the City of Costa Mesa. Section 2. IMPOSITION AND RATE OF TAX. For the privilege of selling tangible personal property at retail., a tax is hereby imposed upon all retailers at the rate of 1% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City of Costa Mesa on or. after October 1, 1953• The license tax imposed by the provisions of this ordinance is in addition to any and all other taxes imposed by any other ordinance of the City of Costa Mesa. Section 3. TAX LEVIED IN SAME MANNER AS STATE TAX. The tax hereby levied, except otherwise herein provided, is levied in the same manner, to the same extent and under the same con— ditions as sales taxes are levied pursuant to Part 1 of Division 2 of the California Revenue and Taxation Code, known as the "Sales and Use Tax Laws', as amended and in force and effect on October 1, 1953, or any amendments hereafter adopted and in force and effect in the State of California. Section 4. ADOPTION OF STATE SALES TAX LAW BY REFERENCE. — EXCEPTIONS. (a) All of the provisions of the "Sales and Use Tax Laws', as amended and in force and effect on October 1, 1953, except the provisions thereof pertaining solely to the "Use Tax's and sections 6051, 6052, 6053, 6066, 6067, 6068, 6069, 6070, 6071, 6451, 7052, 7056, 7101, 7102, 7151, 7152. 7153, applicabla to sales of property at retail, are hereby adopted and made a part of this ordinance as though fully set forth herein, and all provisions of any other ordinance in conflict therewith are inapplicable to this ordinance and the tax hereby imposed; provided, however, the term "gross receipts", as used herein, does not include the amount of any tax imposed by the State of California upon or with respect to retail sales whether imposed upon the retailer or upon the consumer. ale (b) The inclusion of any clause, portion or part of the "State Sales and Use Tax Law", Part 1, Division 2 of the Revenue and Taxation Code of the State of California, or the rules and regulations of the State Board of Equalization, verbatim in this ordinance shall not in or of itself be deemed to exclude any of the remaining provisions of said "Sales and Use Tax Law" or rules and regulations that are made a part hereof by reference only► (c) All the provisions of the "Sales and Use Tax Law" hereby adopted, providing for the adoption of rules and regulations and for hearings on the part of the State Board of Equalization, shall be performed by the City Council of the City of Costa Mesa. All other provisions of the "Sales and Use Tax Law" hereby adopted, providing for the perform- ance of official action on the part of the State Board of Equalization, shall be performed by the City Tax Collector. (d) The City of Costa Mesa shall be deemed substituted for the State of California whenever the State is referred to in said t'Sales and Use Tax Law". (e) The City Attorney of Costa Mesa shall be deemed substituted for the Attorney General whenever the Attorney General is referred to in said "Sales and Use Tax Law". (f) The City Accountant shall be deemed substituted for the State Controller whenever the State Controller or State Board of Control are referred to in said "Sales and Use Tax Law". (g) The County of Orange shall be deemed substituted for the County of Sacramento whenever the County of Sacramento is referred to in said "Sales and Use Tax Law". Section 5. EXEMPTIONS. (a) In addition to those exemptions contained in Part 1 of Division 2 of the Revenue and Taxation Code of the State of California, included in this ordinance by reference, there shall be excluded from the computation of the tax, gross receipts from: (i) Sales made to or by the State of California or any agency, department, Political subdivision, district or municipal corporation thereof; (ii) Sales of property to be consumed in, or incorporated into the erection, construction, repair or alteration of either public works or buildings belonging to or being constructed by or on behalf of, or for the use of the United States Government, the State of California or any agency, department, political subdivision, district or public or municipal corporation of the State; —2— (iii) Sales made pursuant to contracts actually executed in good faith prior to the effective date of this ordinance; (iv) Sales of meals, food and drinks sold or served on common carriers opera— ting into, through or out of the City from or to points outside this City. (b) No tax shall be due hereunder if a sales tax, purchase tax, use tax, or pur— chase and use tax imposed by any other city of the State of California has been paid on the same transaction. (c) The Sales Tax does not apply to sales of property which is shipped to a point outside of this City, pursuant to the contract of sale, by delivery by the retailer to such point by means of (1) facilities operated by the retailer, (2) delivery by the retailer to a carrier for shipment to a consignee at such point, or (3) delivery by the retailer to a customs broker or forwarding agent for shipment outside this City. Section 6. ADOPTION OF RULES AND REGULATIONS BY REFERENCE. INTERPRETATIONS. The rules and regulations of the State Board of 7iqualization as amended and in force and effect October 1, 1953, pertaining to the interpretation, administration and enforcement of the "Sales and Use Tax Law", insofar as applicable, except Rule No. 55 (Section 2015, Title 18, California Administrative Code, Sales and Use Tax) shall apply in the interpretation of this ordinance until specifically abandoned by the rules and regulations adopted by the City Council of Costa Mesa pursuant to this ordinance. The word "City" shall be deemed substituted for the word "State" whenever the word "State" appears in said rules and regulations. In lieu of Rule No. 55, specifically excepted above, the following interpretations shall apply in the administrrition of this ordinance; (a) The sales tax DOES NOT apply to sales of property which is: (i) Imported into this City from a foreign country and sold by the importer in the original package in which imported. (ii) Sold to foreign purchasers for shipment abroad and delivered to a ship, airplane, or other conveyance furnished by the purchaser for the purpose of carrying the property abroad and actually carried to a foreign destination, title and control of the property passing to the foreign purchaser upon delivery, and no portion of the property being used or consumed in the United States. Copies of U.S. Customs Shippers' export declaration filed with the Collector of Customs must be obtained and retained by retailers —3— to support deductions taken under this paragraph. The tax applies to the transaction if the property is diverted in transit or for any reason not actually delivered outside the City pursuant to the contract of sale or not shipped abroad by a foreign purchaser, regardless of documentary evidence held by the retailer of delivery of the property to a carrier for shipment outside the City, or to a foreign purchaser for shipment abroad. (iii) Mailed by the seller, pursuant to the contract of sale, to persons in the armed forces at points outside continental United States, notwithstanding the property is addressed in care of the Postmaster and forwarded by him to the addressee. When mail is addressed to Army Post Offices (APO's) in care of the Postmaster or to naval forces addressed in care of the Postmaster, it will be presumed that it is forwarded outside California. The seller must keep records showing the names and addresses as they appear on the mailed matter and should keep evidence that the mailing was done by him. (iv) Shipped to a point outside this City pursuant to the contract of sale when the property is marked for export and delivered by the retailer to the "contracting officer", "officer in chargee, "port quartermaster", or other officer of the United States for transportation and delivery to the purchaser at such a point. (b) The sales tax DOES NOT apply to sales of airplanes, and parts and equipment for airplanes, transported to a point outside this City pursuant to the contract of sale when such property is delivered to the United States Army Corps or any other agency or instrumentality of the United States for transportation and delivery to the purchaser or someone designated by him at that point. (c) The sales tax DOES NOT apply, either in interstate or intrastate commerce, to sales of property shipped from a point outside the City of Costa Mesa to a purchaser inside the City of Costa Mesa, or to the retailer's agent in the City of Costa Mesa for delivery to the purchaser, if none of the elements of sale, other than such delivery, takes place in the City of Costa Mesa. The sales tax DOES apply, either in interstate or intrastate commerce, to sales of property shipped from a point outside of the City of Costa Mesa to a purchaser inside the City of Costa Mesa, or to the retailer's agent in the City of Costa Mesa, for delivery to the purchaser where any element of the sale, in addition to such delivery, takes place in the City of Costa Mesa. "Element of Sale" is hereby defined to include solicitation of an order, the acceptance of an order, the giving of an order, whether such order is given in person, by telephone or by mail, or the payment of the purchase price. Section 7. ADOPTION OF RULES AND REGULATIONS. The City Council of the City of Costa Mesa by resolution may prescribe and adopt rules and regulations relating to the administration and enforcement of this ordinance. Section 8. FORMULA COMPUTATIOT; OF SALES AND USE TAX BY RDTAILERS LOCATED OUTSIDE CITY. The City Tax Collector may approve the payment of the sales tax by retailers located outside the City in accordance with a formula if he finds that the formula will produce the same or approximately the same tax as if detailed accounting procedures had been followed. A retailer desiring to use such a formula shall furnish such information as may be required by the City Tax Collector to enable him to make the required finding. The formula may be used by the retailer for such period of time, not to exceed one year, as may be authorized by the City Tax Collector, in writing, and is subject to renewal, upon application, for periods not to exceed one year. Payment in full of sales taxes in accordance with an approved formula shall constitute full satisfaction of the retailer's sales tax liability. Section 9. APPLICATION FOR P TIHIT. Every person desiring to engage in or conduct business as a seller within the City of Costa Mesa shall file with the City Tax Collector, an appli— cation for a permit for each place of business from which taxable sales will be made. Every application for a permit shall be na de upon a form prescribed by the City Tax Collector, and shall set forth the name under which the applicant transacts or intends to transact business, the location of his place or places of business, and such other information as the City Tax Collector may require. The application shall be signed by the owner, if a natural person; in the case of a corporation, by an executive officer or some person specifically authorized by the corporation to sign the application, to which shall be attached the written evidence of his authority. Section 10. ISSUANCE AICD DISPLAY OF PERMIT. After compliance with Section 9 of this ordinance by the applicant, the City Tax. Collector shall grant and issue to each applicant a sepa— rate permit for each place of business from 11hich ta<:able sales will be made. A permit is not assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated therein; provided, a change of location may be endorsed upon the permit by the City Tax Collector. The permit shall at all times —5— be conspicuously displayed at the place for which issued. Section 11. PERMIT FEES. At the time of making an application for a permit, and at the time a change of location is endorsed upon a permit, the applicant for a permit or for an endorsement of a change of location on a permit shall pay no fee to the City Tax Collector thereof. Section 12. REVOCATION OF PERMIT. Whenever any person fails to comply with any of the provi- sions of this ordinance or any rule or regulation adopted pursuant hereto, the City Council of the City of Costa Mesa, upon hearing, after giving the person ten days, notice in writing specifying the time and place of hearing and requiring him to show cause why his permit or permits should not be revoked, may revoke or suspend any one or more of the permits held by the person. The notice mai: be served personally or by mail in the manner prescribed for the service of notice of a deficiency determination under the "Sales and Use Tax Law". The City Tax Collector shall not issue a new permit after the revocation of a permit unless the City Council of the City of Costa Mesa is satisfied that the former holder of a permit will comply with the provisions of this ordinance and the rules and regulations adopted pursuant hereto and directs the City Tax Collector to issue such permit. Section 13. RENEWAL OF PERMIT. A seller whose permit has been previously suspended or revoked shall pay the City Tax Collector a fee of $5.00 for the renewal or issuance of a permit. Section 14, UNLAWFUL ACTS. A person who engages in business as a seller in the City of Costa Mesa without a permit or permits, or after a permit has been suspended or revoked and before the renewal or issuance of a permit, and each officer of any corporation which so engages in business, is guilty of a misdemeanor. Section 15, DUE DATES OF TAXES. The taxes imposed by this ordinance are due and payable to the City Tax Collector on or before the last day of the month next succeeding each quarter- ly period, the first quarterly payment to be due and payable under this ordinance on the 31st day of January, 1954. The City Tax Collector may require returns and payments of the amount of taxes for quarterly periods other than calendar quarters, depending upon the principal place of, or the nature of the business of, the seller or retailer, or may �6- require returns and payment of the amount of taxes for other than quarterly periods. Section 16. REIMBURSEMENT. The tax hereby imposed shall be collected by the retailer from the consumer insofar as it can be done. Section 17. UNLAWFUL ADVERTISING. It is unlawful for any retailer to advertise or hold out or state to the Public or to any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold or that, if added, it or any part thereof will be refunded. Any person violating any provision of this section is guilty of a misdemeanor. Section 18. SUIT FOR TAX. All taxes hereby levied shall be payable to the City Tax Collector, and any civil suit for the collection thereof may be filed in any court of competent jurisdiction in the State of California, and the City Attorney of said City shall prose— cute the action. Section 19. RESALE CERTIFICATE. The City Tax Collector may at his option accept a State of California Resale Certificate as evidence that any sale is not a sale at retail, or he may in his discretion require an affidavit from the seller setting forth such information respecting such sale as he deems necessary to determine the nature of such sale. Section 20. EXTENSION OF TIPM, WAIVER OR COMPROMISE. The City Tax Collector shall have power, for good cause shown, to extend for a period of not to exceed 30 days the time for making any return or paying any amount required to be paid under this ordinance, when requested so to do in writing, before the same becomes delinquent. The City Tax Collector, may, with the written approval of the City Attorney, waive or compromise any penalty or interest that would otherwise accrue under the provisions of this ordinance. The City Tax Collect— or shall make and transmit to the City Council quarterly, a detailed report of any sums so waived or compromised with the reasons thereof. Section 21, DISPOSITION OF PROCEEDS. All monies collected under and pursuant to the provisions of this ordinance shall be deposited and paid into the General Fund of the City of Costa Mesa; provided, however, that commencing with the quarterly period ending September 30, 1954, one half of all monies collected under and pursuant to the provisions of this —7— ordinance shall be deposited and paid into the Capital Outlay Fund of the City of Costa Mesa, and the remaining one half of all monies collected shall be deposited and paid into the General Fund of the City of Costa Mesa. Section 22. DIVULGING OF INFORMATION FO-UIDDEN. It is unlawful for any officer or employee of the City of Costa Mesa having an administrative duty under this ordinance to make known in any manner whatever the business affairs, operations, or information obtained 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 particular thereof, set forth or disclosed in any return, or to permit any return or copy thereof or any book containing any abstract or particulars thereof to be seen or examined by any person. However, the City Council may, by resolution, authorize examination of the returns by Federal or State officers or employees or by the tax officers of this or any other city if a reciprocal arrangement exists. Successors, receivers, trustees, executors, guarantors, administrators, and assignees, 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 23. FRAUDULENT RETURNS. It shall be unlawful for any person to make any false or fraudulent return with intent to defeat or evade the determination of an amount due and required to be paid hereunder. Section 24. FAILURE TO MAKE RETURN OR FURNISH DATA. It shall be unlawful for any person to fail or refuse to furnish any return information or data reasonably required by the City Tax Collector in the administration of this ordinance. Section 25. PENALTIES. Any person required to make, render, sign or verify any report under the provisions of this ordinance, who makes any false or fraudulent return, with intent to defeat or evade the determination of an amount due and required to be paid hereunder, is 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 26. REFUNDS. Claims and demands for refunds for any amounts erroneously or illegally collected under this chapter shall be filed as required by the State law or City ordinances of the City of Costa Mesa. Section 27. SEVERABILITY. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdictions such decision shall not affect the validity of the remaining portions of this ordinance• The Council of this City 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, clauses, phrases or portions be declared invalid or unconstitutional. Section 28. EFFECTIVE DATE. This ordinance shall take effect and be in full force thirty (30) days after its passage. The City Clerk of the City of Costa Mesa shall attest to the passage of this ordinance and pursuant to Section 36933 of the Government Code shall cause it to be posted in at least three public places in the City within fifteen (15) days after its passage. Passed and adopted this 24th day of August, 1953• Mayor of the City of Costa Mesa ATTEST: City Clerk of the City of Costa Mesa STATE OF CALIFORNIA! COUNTY OF ORANGE : ss CITY OF COSTA MESA : I, A. C. SWARTZ, City Clerk of the City of Costa Mesa, do hereby certify that at a regular meeting of the City Council of the City of Costa Mesa, held on the 2 thday of _ Atagu st , 1953, the foregoing Ordinance, containing 28 sections, was considered section by section, and that the said Ordinance was then passed and adopted as a whole by the following vote: AYES: �_ COUNCILIvMTt MARTIN, MILLER, NELSON, SMITH ead TeVINKLE NOES: �` C OUNC ILMEN : NONE ABSENT! 0 COUNCILMEN: NONE I further certify that said Ordinance was thereupon signed by the Mayor of the City of Costa Mesa. ATTEST: City Clerk of the City of Costa Mesa STATE OF CALIFORNIA: COUNTY OF ORANGE : ss CITY OF COSTA MESA I. A. C. SWARTZ, City Clerk of the City of Costa Mesa, do hereby certify that on the 5t day of September , 1953,.I posted the foregoing true and correct copy of the foregoing Ordinance in the following public places in the City: Justice Court 567 West Eighteenth Street Costa Mesa, California Costa Mesa Branch Library 526 Center Street Costa 1,,esa, California Costa Hesa Fire Hall 111 Rochester Street Costa Mesa, California WITNESS my hand and seal this4th day of September 19i3 City Clerk of the City of sta Mesa