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HomeMy WebLinkAbout83-30 Regarding the Sales and Use Tax Administered by the State Board of EqualizationORDINANCE NO. F3-.30 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING TITLE 16, CHAPTER 2, OF THE COSTA MESA MUNICIPAL CODE REGARDING THE SALES AND USE TAX ADMINISTERED BY THE STATE BOARD OF EQUALIZATION. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1: The City Council of the City of Costa Mesa hereby finds and declares that recent revisions and amendments to Sections 7202 and 7203 of the California Revenue and Taxation Code would delete from our City ordinance the exemptions for operators of water -borne vessels. The City Council further finds and declares that if the changes to the State Sales and Use Tax Law remain operative, it is imperative that Costa Mesa's ordinances be amended prior to January 1, 1984, when the amendments to Sections 7202 and 7203 take effect. The City Council further finds and declares that there is a possibility that the water- borne vessel exemption will be restored by the Legislature early in 1984 and that Sections 3 and 4 of this amendment are necessary to restore the watercraft exemption to our ordinance if so restored by the State law. The City Council of the City of Costa Mesa finds and declares that this Ordinance relates to taxes for the usual and current expenses of the City. Accordingly, the City Council of the City of Costa Mesa herewith amends Title 16, Chapter 2, of the Costa Mesa Municipal Code and finds and declares that the efficiency in administration of the City's budget and financial affairs, as well as the needed continuation of State collection and enforcement of the Sales and Use Tax, requires that this Ordinance be adopted as an urgency measure, pursuant to Sections 36934 and 36937 of the California Government Code. SECTION 2: The following new amendments are to be added to Title 16 as an urgency measure: 1. Section 16-24 is amended to read as follows: "Section 16-24. General Exclusions and Exemptions. There shall be excluded from the gross receipts by which the tax is measured: (a) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer. (b) 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." 2. Section 16-25 is amended to read as follows: "Section 16-25. Additional Exclusions and Exemptions. There shall be exempt from the tax due under this section: (a) The amount of 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 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. (c) 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 air- craft 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." 3. Section 16-24 is amended to read as follows: "Section 16-24. General Exclusions and Exemptions. There shall be excluded from the gross receipts by which the tax is measured: (a) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer. (b) The gross receipts from the sale of tangible personal property to operators of water -borne vessels to be used or consumed principally outside the city in which the sale is made and directly and exclusively in the carriage persons or property in such vessels for commercial purposes. (c) 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." 4. Section 16-25 is amended to read as follows: "Section 16-25. Additional Exclusions and Exemptions. There shall be exempt from the tax due under this section: (a) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer. -2- 1984. (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. (c) The storage, use or other consumption of tangible personal property purchased by operators of water -borne vessels and and used or consumed by such operators directly and exclusively in the carriage of persons or property in such vessels for commercial purposes. (d) 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 air- craft 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." 5. Paragraphs 1 and 2 of this Ordinance shall be operative January 1, 6. Paragraphs 3 and 4 of this Ordinance shall be operative on the operative date of any act of the Legislature of the State of California which amends or repeals and reenacts Section 7202 of the Revenue and Taxation Code to provide an exemption from city sales and use taxes for operators of water -borne vessels in the same, or subtantially the same, language as that existing in Subdivisions (i)(7) and (i)(8) of Section 7202 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983. SECTION 3: This Ordinance shall take effect and be in full force immediately from and after the passage thereof, and prior to the expira- tion of fifteen (15) days from its passage shall be published once in the ORANGE COAST DAILY PILOT, a newspaper of general circulation, printed and published in the City of Costa Mesa together with the names of the members of the City Council voting for and against the same. PASSED AND ADOPTED thisday ATTEST: y Clerk of the City of Costa t sa CONTENT AP OVED -3- Mayor of the Cit 1983 Costa Mesa APPROVED AS TO FORM CITY ATTOR Y I STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certify that the above and foregoing Ordinance No. 33-30 was introduced and considered section by section at a regular meeting of said City Council held on the day of , 1983, and thereafter passed and adopted as a whole t a reg lar meeting of said City Council held on the day of 1983, by the following roll ca 1 vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: � 7�1 C ABSENT: COUNCILMEMBERS: IN WITNESS WHEREOF, I have hereunto set my Vnd and ffixed the Seal of the City of Costa Mesa this (,,, day of 1983. _ City Clerk and ex -officio Clerk of he -= City Council of the City of Cost esa Q0