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HomeMy WebLinkAboutOrdinance #643 ORDINANCE NO,. 643 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH IMPOSING A CITY SALES AND USE TAX: PROVIDING FOR THE PERFORMANCE BY THE STATE BOARD OF EQUALIZATION OF ALL FUNCTIONS INCIDENT TO THE ADhINISTRATION, OPERATION .AND COLLECTION OF THE SALES AND USE TAX HEREBY IMPOSED AND PRO- VIDING PENALTIES FOR VIOLATION THEREOF, BY ADDING A NEW ARTICLE TO THE HUNTINGTON BEACH ORDINANCE CODE, ARTICLE 172, ENTITLED "SALES AND USE TAX" . The City Council of the City of Huntington Beach do ordain as follows: Section 1: SHORT TITLE. This ordinance shall be known as the Uniform Local Sales and Use Tax of the City of Huntington Beach. Section 2: That the Huntington Beach Ordinance Code is hereby amended by adding a new article , designat- ed Article 172 and entitled, "Sales and Use Tax" . Section 3: That the Huntington Beach Ordinance Code is hereby amended by adding 19 new sections, the same to be known as Sections 1721,1721.1, 1721.21 1721.3, 1721.47 1721.51 17227 1723, 1723.17 1723.21 1723.217 1723.221 1723.237 1724, 172 4.1, 1724.21 1724.3, 1725 and 1726, and to read in words and figures as follows: Section 1721. PURPOSE. The City Council of the City of Huntington Beach hereby de- clares that this ordinance is adopted to 1. Ord. No. 643 &.chieve the following, among other purposes and directs that the provisions hereof be interpreted in order to accomplish those purposes: Section 1721.1. To adopt a sales and use tax ordinance which complies with the re- quirements and limitations contained in Fart 1.5 of Division 2 of the Revenue and Taxation Code of the State of California; Section 1721.2. To adopt a sales and use tax ordinance which 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 1.5 of Division 2 of the said Reven- ue and Taxation Code; Section 1721.3. To adopt a sales and use tax ordinance which imposes a one percent (1%) tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practical toy and requires the least possible deviation 2. Ord. No. 643 from, the existing statutory and administra- tive procedures followed by the State Board of Equalization in administering and collect- ing the California State Sales and Use Taxes; Section 1721.4. To adopt a sales and use tax ordinance which can be administered in a manner that will, to the degree possible con- sistent with the provisions of Fart 1.5 of Division 2 of the said Revenue and Taxation Code, minimize the cost of collecting city sales and use taxes and at the same time min- imize the burden of record keeping upon per- sons subject to taxation under the provisions of this ordinance; Section 1721.5. To adopt a sales and use tax ordinance which can be administered in a manner that will exclude the receipts of par- ticular sales from the measure of the sales tax imposed by this City which have been in eluded in the measure of the sales tax im- posed 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 .3. Ord. No. 643 other consumption of tangible personal property in this City when the gross re- ceipts 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 Tax- ation Code. Section 1722, OPERATIVE DATE. CONTRACT WITH STATE. This ordinance shall become operative on April 1, 1956, and prior there- to this City shall contract with the State Board of Equalization to perform all func- tions incident to the administration and operation of this sales and use tax ordi- nance; provided, that if this City shall not have contracted s,.ith the said State Board of Equalization, as above set forth, prior to April 1, 1956, this ordinance shall not be operative until the first day of the first calendar quarter following the execution of such a contract by the fit-. I' Ord. ido. 643 ' City and by the State Board of Equaliza- tion, 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 Orange. Section 1723. SALES TAX. For the privi- lege of selling tangible personal proper- ty at retail a tax is hereby imposed upon all retailers in the city at the rate of one percent (lo) of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the City of Huntington Beach on and after the operative date of this ordinance. Section 1723.-D, > For the purpose of this ordinance , all retail sales shall be pre- sumed to have been consummated at the place of business of the retailer unless the tangible personal property sold is de- livered 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. Delivery charges shall be in- cluded in the gross receipts by which the 5_ Ord No: 643 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 imposed by the State of California. In the event a retailer 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 prescribed and adopted by the Board of Equalization. Section 1723.2. Except as hereinafter provid- ed, and except insofar as they are inconsis- tent with the provisions of Part 1.5 of Divis- ion 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 April 1, 1956, applica- ble to sales taxes are hereby adopted and made a part of this section as though fully set forth herein. Section 1723.21. Wherever, and to the ex- tent that, in Part 1 of Division 2 of the said Revenue and Taxation Code of the State of California is named or referred to as ti Ord. No. 643 t the taxing agency, the City of Huntington Beach shall be substituted therefor. Noth- ing in this subdivision shall be deemed to require the substitution of the name of the City of Huntington Beach 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 Con- trol, the State Board of Equalization, or the name of the State Treasury, or the Constitution of the State of California; nor shall the name of the City be substi- tuted 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 opera- tion of this ordinance; and neither shall the substitution be deemed to have been made in those sections, including, but not necessarily limited to, sections re- ferring to the exterior boundaries of the State of California, where the result of Ord. No. 643 i the substitution would be to provide an ex- emption T rorn 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 impose this tax with respect to certain gross receipts which would not be subject to tax by the State under the same 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 (ex- cept in the last sentence thereof) , 6711, 6715, 6737, 6797 and 6828 of the said Revenue and Taxation Code as adopted. Section 1723,22. If a seller' s permit has been issued to a retailer under Sec- tion 6068 of the said Revenue and Taxa- tion Code , an additional seller ' s per- mit shall not be required by reason of this section. Section 1221,2, There shall be excluded from the gross receipts 3 Ord. No. 643 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) Receipts from the sale of tangible personal property upon which a sales or use tax has be- come due by reason of the same transaction to any other city and county, county other than the county in which this city is loca- ted, or city in this State under a sales or use tax ordinance enact- ed 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. (c) Receipts from sales to op- erators of common carrier and water- borne vessels of property to be used or consumed in the operation of such common carriers or waterborne vessels principally outside of this City. 9. Ord. No. 643 Section 1724. USE TAX. An excise tax is hereby imposed on the storage , use or other consumption in the City of Huntington Beach 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 (lo) 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 de- livery is made. Section 1724.1. 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 April 11 1956, applicable to use taxes are here- by adopted and made a part of this section as though fully set forth herein. 10. J Ord. No. 643 Section 1724.2. Wherever, and to the ex- tent that, in Fart 1 of Division 2 of the said Revenue and Taxation Code the State of California is named or referred to as the taxing agency, the City of Huntington. Beach shall be substituted therefor. Noth- ing in this subdivision shall be deemed to require the substitution of the name of the City of Huntington Beach 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 Con- trol, 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 substi- tuted for that of the State in any sec- tion 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 func- tions incident to the administration or operation of t1is ordinance; and neither shall the substitution be deemed to have 11 � � Ord. No. 643 been made in thosesections , 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 provide an exemption from this tax with respect to certain storage, use or other consumption of tangible personal property which would not otherwise 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 Rev- enue and Taxation Code , or to impose this tax with respect to certain storage , use or other consumption of tangible per- sonal property which would not be subject to tax by the State under the said provis- ions 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 in the last sentence thereof) , 67111 67157 6737, 6797 and 6828 of the said Revenue and Taxation Code as adopted. Section 1724. 3. There shall be ex- empt frora the tax due under this 12_ -- - - J Ord. No. 643 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 or the cost of which has been subject to sales or use tax under a sales or use tax ordi- nance enacted in accordance with Part 1.5 of Division 2 of the said Revenue and Taxation Code by any other city and county, county other than the county in which this city is located, or city in this State. (c) The storage or use of tangi- ble personal property in the trans- portation or transmission of persons, property or communications, or in the generation, transmission or dis- tribution of electricity or in the manufacture , transmission or distrib- ution of gas in intrastate, interstate or foreign commerce by public utili- Ord. No.643 ties which are regulated by the Pub- lic'LUtilities Commission of the State of California. (d) The use or consumption of property purchased by operators of common carrier and waterborne vessels to be used or consumed in the opera- tion of such common carriers or water- borne vessels principally outside the city. Section 1725. AMENDMENTS. All amendments of the said Revenue and Taxation Code enacted subsequent to the effective date of this ordi- nance which relate to the sales "and use tax and which are not inconsistent with Fart 1.5 of Division 2 of the said Revenue and Taxa- tion Code shall automatically become a part of this ordinance. Section 1726. ENJOINING 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 this City, or against any of- ficer of the State or this City, to prevent or enjoin the collection under this ordinance, Ord. No. 643 or Part 1.5 of Division 2 of the Revenue and Taxation Code , of any tax or any amount of tax required to be collected. Section 1-: PENALTIES. .any person violating any of the provisions of this ordinance shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not nore than 0`500.00 or by im- prisonment for a period of not more than six (6) months in the City Jail, or by both such fine and imprisonment. Section 5: SEVERABILITY. If any section, subsec- tion, sentence, clause , phrase or portion of this ordi- nance, including but not limited to any exemption, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The Council of the City of Huntington Beach hereby declares that it would have adopt- ed 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 un- constitutional. Section 6: The City Clerk shall certify to the pas- sage and adoption of this ordinance and shall cause the i iK J Ord No. 643 same to be published by one insertion in the Huntington Beach News , a weekly newspaper, printed, published and circulated in the City of Huntington. Beach, Orange County, CaliFornia; and the same shall take effect and be in force on and after April 1 , 1956. PASSED AND ADOPTED this 1st day of March",,' , 1956. Mayor ATTEST: 1 City Clerk i 16. Ord. No. 643 1 STATE OF CALIFORNIA ) County of Orange ) ss. City of Huntington Beach ) I, JOHN L. HENRICKSEN, the duly elected, qualified and acting City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is five; that the foregoing ordinance was first read to said City adjourned Council at a regular/meeting thereof held on the 2Lth day of FebruarV , 1956, and was again read to a Mourned said City Council at a regula meeting thereof held on the 1st day of March , 1956, and was passed and adopted .by the affirmative vote of more than a major- ity of all the members of said City Council as follows: AYES: Councilmen: Lockett , . Bartlett , LeBard, S'eabridge NOES: Councilmen: None ABSENT: Councilmen: Ter-"rY C' y Clerk an ex-officio Clerk o the City Council of the City of Huntington Beach, California