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HomeMy WebLinkAboutOrdinance #1896 ORDINANCE NO. 1896 AN EMERGENCY ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING THE HUNTINGTON BEACH ORDINANCE CODE BY REPEALING ARTICLE 172 AND ADDING NEW ARTICLE 172 ENTITLED, "UNIFORM LOCAL SALES AND USE TAX" The City Council of the City of Huntington Beach does ordain as follows : SECTION 1. Article 172 of the Huntington Beach Ordinance Code is hereby repealed, effective January 1, 1974 . SECTION 2. The Huntington Beach Ordinance Code is hereby amended by adding thereto new Article 172, entitled, "Uniform Local Sales and Use Tax" to read as follows: ARTICLE 172 UNIFORM LOCAL SALES AND USE TAX 1720. SHORT TITLE. This article shall be known as the Uniform Local Sales and Use Tax. 1720. 1. RATE. The rate of sales tax and use tax imposed by this article shall be 1 cent per dollar. 1720. 2 . OPERATIVE DATE. This article shall be operative on January 1, 1974. 1720. 3 . PURPOSE. The City Council hereby declares that this article 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 adopt provisions for a sales and use tax which complies with the requirements and limitations contained in Part 1. 5 of Division 2 of the Revenue and Taxation Code; (b) To adopt provisions for a sales and use tax which incorporate 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 Revenue and Taxation Code; 1. WM,a hb (c ) To adopt provisions for a sales and use tax which imposes a 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 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 provisions for a sales and use tax which can be administered in a manner that will, to the degree pos- sible consistent with the provisions of Part 1 . 5 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting city sales and use taxes and at the same time minimize the burden of record keeping upon persons subject to taxation under the provisions of this article. 1721 . CONTRACT WITH STATE. Prior to the operative date this city shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of the sales and use tax provided for herein; provided, that if this city shall not have contracted with the State Board of Equalization prior to the operative date, it shall neverthe- less so contract and in such a case the operative date shall be the first day of the first calendar quarter following the exe- cution of such a contract rather than the first day of the first day of the first calendar quarter following the adoption of this article. 1721.1. SALES TAX. For the privilege of selling tangible property at retail a tax is hereby imposed upon all retailers in the city at the rate stated in Section 1720 . 1 of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in this city on and after the operative date. 1721. 2. PLACE OF SALE. For the purposes of this article, all retail sales are 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 desti- nation 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. 2 . 1721. 3. USE TAX. An excise tax is hereby imposed on the storage, use or other consumption in this city of tangible per- sonal property purchased from any retailer on and after the operative date for storage, use or other consumption in this city at the rate stated in Section 1720.1 of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sale or use tax regard- less of the place to which delivery is made . 1722. ADOPTION OF PROVISIONS OF STATE LAW. Except as otherwise provided in this article and except insofar as they are inconsistent with the provisions of Part 1 . 5 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this article as though fully set forth herein. 1722. 1. LIMITATIONS ON ADOPTION OF STATE LAW. In adopting the provisions of Part 1 of Division 2 of the Revenue and Tax- ation Code, wherever the State of California is named or referred to as the taxing agency, the name of this city shall be substi- tuted therefor. The substitution, however, shall not be made when the word "State" is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, the State Treasury, or the Consti- tution of the State of California; the substitution shall not be made 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 perform- ing the functions incident to the administration or operation of this article; the substitution shall not be 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 the substitution would be to provide an ex- emption 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 to 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 provisions of that Code; the substitution shall not be made in Sections 6701, 6702 (except in the last sentence thereof) , 6711, 6715, 67375 6797 or 6828 of the Revenue and Taxation Code; and the substitution shall not be made for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 or in the definition of that phrase in Section 6203. 1722. 2. PERMIT NOT REQUIRED. If a seller' s permit has been 3 . issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional seller' s permit shall not be required by this article . 1722. 3 EXCLUSIONS AND EXEMPTIONS. There shall be ex- cluded from the measure of tax: (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 ordi- nance 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 gross receipts from sales to, and the storage, use or other consumption of property purchased by, operators of common carriers and waterborne vessels to be used or con- sumed in the operation of such common carriers or waterborne vessels principally outside this city . (d) The storage or use of tangible personal property in the transportation or transmission of persons, property or communications, or in the generation, transmission or distri- bution of electricity or in the manufacture, transmission or distribution of gas in intrastate, interstate or foreign com- merce by public utilities which are regulated by the Public Utilities Commission of the State of California . 1722. 4. EXCLUSIONS AND EXEMPTIONS. (a) The amount subject to tax shall not include 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 have been subject to 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 shall be exempt from the tax due under this article. (c ) There are exempted from the computation of the amount of the sales tax the gross receipts from the sale of tangible personal property to operators of waterborne vessels to be used or consumed principally outside the city in which the sale is 4. made and directly and exclusively in the carriage of persons or property in such vessels for commercial purposes . (d) The storage, use, or other consumption of tangible personal property purchased by operators of waterborne ves- sels and used or consumed by such operators directly and ex- clusively in the carriage of persons or property of such vessels for commercial purposes is exempted from the use tax. (e) There are exempted from the computation of the amount of the sales tax the gross receipts from the sale of tangible personal property to operators of aircraft to be used or con- sumed 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 . (f) 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 pur- chased 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 compen- sation under a certificate of public convenience and necessity issued pursuant to the laws of this state, the United States, or any foreign government is exempted from the use tax. 1723. APPLICATION OF PROVISIONS RELATING TO EXCLUSIONS AND EXEMPTIONS. (a) Section 1722.. 4 of this article shall become operative on January lst of the year following the year in which the State Board of Equalization adopts an assessment ratio for state-assessed property which is identical to the ratio which is required for local assessments by Section 401 of the Revenue and Taxation Code, at which time Section 1722 .3 of this article shall become inoperative . (b) In the event that Section 1722. 4 of this article becomes operative and the State Board of Equalization subse- quently adopts an assessment ratio for the state-assessed property which is higher than the ratio which is required for local assessments by Section 401 of the Revenue and Taxation Code, Section 1722. 3 of this article shall become operative on the first day of the month next following the month in which such higher ratio is adopted, at which time Section 1722. 4 of this article shall be inoperative until the first day of the month following the month in which the Board again adopts an assessment ratio for state-assessed property which 5. iz identical to the ratio required for local assessments by Section 401 of the Revenue and Taxation Code., at which time Section 1722. 4 shall again become operative and Section 1722. 3 shall become inoperative. 1723. 1. AMENDMENTS . All subsequent amendments of the Revenue and Taxation Code which relate to the sales and use tax and which are not inconsistent with Part 1. 5 of Division 2 of the Revenue and Taxation Code shall automatically become a part of this article. 1723 . 2. 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 officer of the state or this city, to prevent or enjoin the collection under this article, 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. 1723 . 3. PENALTIES . Any person violating any of the provisions of this article shall be deemed guilty of a mis- demeanor, and upon conviction thereof shall be punishable by a fine of not more than $500 or by imprisonment for a period of not more than six C6) months, or by both such fine and im- prisonment , 1724 . SEVERABILITY. If any provision of this article or the application thereof to any person or circumstance is held invalid, the remainder of the article and the application of such provision to other persons or circumstances shall not be affected thereby. SECTION 3. REPEALS . Ordinance No. 643, as amended by Ordinance No. 878, and that portion of Ordinance No. 1151 pertaining to Section 1723 . 23, as amended by Ordinance No. 1877, and all ordinances in conflict herewith are hereby re- pealed effective January 1, 1974; provided, however, that said ordinances, as amended, shall remain applicable for the pur- poses of the administration of said ordinance and imposition of and the collection of tax with respect to the sales of, and the storage, use, or other consumption of tangible personal property prior to January 1, 1974, the making of refunds, ef- fecting credits, the disposition of monies collected and for the commencement or continuation of any action or proceeding 6 . SECTION 4. This ordinance is declared an emergency ordi- nance, pursuant to Sections 511 and 514Cc ) of the city Charter, necessary for usual and necessary expenses of the city, and to assure proper functioning of the city ' s tax structure, and shall take effect immediately. The facts constituting such emergency are that amendments to the Bradley-Burns law, effected by Assembly Bill 309 and Senate Bill 90, will be operative by January 1, 1974, and the City of Huntington Beach is required to amend its ordinance code in conformity therewith or suffer loss for three months of funds allocated to municipalities under such Bradley- Burns law. SECTION 5. The City Clerk shall certify to the passage of this ordinance and shall cause same to be published within fifteen days of its passage in the Huntington Beach News, a newspaper of general circulation, printed and published in Huntington Beach, California. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 17th day of December, 1973 . 0 Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Atto 7 . CERTIFICATE OF FINAL ACTION OF GOVERNING BODY December 18, 1973 STATE BOARD OF EQUALIZATION P. 0. Box 1799 Sacramento, California 95809 I hereby certify: That the City Council of the City of Huntington Beach adopted on December 17, 1973, by an affirmative vote of a majority of the members of said governing body, Ordinance No. 1896 amending sections of Article 172, "Sales and Use Tax" to conform with revisions contained in AB 309 and SB 90, and Chapter 1406, statutes 1972, a certified copy of said requiring such amendment of the City's Bradley-Burns Ordinance. Alicia M. Wentworth City Clerk City of Huntington Beach Emergency Ord. No. 1896 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF HUNTINGTON BEACH ) I, ALICIA M. WENTWORTH, the duly appointed, qualified City Clerk of the City of Huntington Beach and ex-officio Clerk of the City Council of the said City, do hereby certify that the foregoing ordinance was read to the City Council of the City of Huntington Beach at a regular meeting thereof held on the 17th day of December , 19 73 , and was passed and adopted by at least five (5) affirmative votes of said City Council. AYES: Councilmen: Shipley, Bartlett, Green, Coen, Duke, Matney NOES: Councilmen: None ABSENT: Councilmen: Gibbs t ity Clerk 'an d- ex-of icio' Clerk of the City Council of the City of Huntington Beach, California Fenb M. Wentworth CITY CLERK of the City of n Beach and ex-officio Clerk of the City o hereby certify that this ordinance has lished in the Huntington Beach News on nce with the City Charter of said City. ALICIA........ PA. WENTWORTI!.....------------...City Clerk .... Gf z, ......._. Deputy City Clerk i 4