ORD 005 ORDINANCE NO. 5
AN ORDINANCE IMPOSING A SALES AND USE TAX TO BE ADMINISTERED
BY THE STATE BOARD OF EQUALIZATION AND PROVIDING PENALTIES FOR
VIOLATIONS
THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES ORDAIN AS FOLLOWS:
Section 1. Short Title.
This ordinance shall be known as the Uniform Local Sales and Use Tax
Ordinance.
Section 2. Rate.
The rate of sales tax and use tax imposed by this ordinance shall be 1%.
Section 3. Operative Date.
This ordinance shall be operative on October 1, 1973.
Section 4. Purpose.
The City Council hereby declares that this ordinance 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 a sales and use tax ordinance which complies with the
requirements and limitations contained in Part 1.5 of Division 2 of the Revenue
and Taxation Code;
(b) 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 Cali-
fornia 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;
(c) To adopt a sales and use tax ordinance 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 admin-
istrative procedures followed by the State Board of Equalization in administering
and collecting the California State Sales and Use Taxes;
(d) To adopt a sales and use tax ordinance which can be administered
in a manner that will, to the degree possible 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 ordinance.
Section 5. Contract With State.
11/ 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 this sales and use tax ordinance; provided, that if this city shall not have con-
tracted with the State Board of Equalization prior to the operative date, it shall
nevertheless so contract and in such a case the operative date shall be the first day
of the first calendar quarter following the execution of such a contract rather than
the first day of the first calendar quarter following the adoption of this ordinance.
Section 6. Sales Tax.
For the privilege of selling tangible personal property at retail a tax
is hereby imposed upon all retailers in the city at the rate stated in Section 2 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.
Section 7. Place of Sale.
For the purposes of this ordinance, all retail sales are consummated at
the place of business of the retailer unless the tangible personal property sold
is delivered by the retailer of his agent to an out-of-State destination 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.
Section 8. Use Tax.
11/ An excise tax is hereby imposed on the storage, use or other consumption
in this city of tangible personal 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 2 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 delivery is made.
Section 9. Adoption of Provisions of State Law.
Except as otherwise provided in this ordinance 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 ordinance as though
fully set forth herein.
Section 10. Limitations on Adoption of State Law.
In adopting the provisions of Part 1 of Division 2 of the Revenue and
Taxation Code, wherever the State of California is named or referred to as the
taxing agency, the name of this City shall be substituted therefor. The substi-
tution, 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 Constitution of the State
of California; the substitution shall not be made when the result of that substi-
tution 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 operation of this ordinance;
the substitution shall not be made in those sections, 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 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, 6737, 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.
Section 11. Permit Not Required.
If a seller's permit has been issued to a retailer under Section 6067 of
the Revenue and Taxation Code, an additional seller's permit shall not be required
by this ordinance.
Section 12. Exclusions and Exemptions.
There shall be excluded 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.
Page 2 Ord 5
(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 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 consumed in the operation of such common carriers or water-
borne vessels principally outside this city.
(d) The storage or use of tangible personal property in the trans-
portation or transmission of persons, property or communications, or in the gener-
ation, transmission or distribution of electricity or in the manufacture, trans-
mission or distribution of gas in intrastate, interstate or foreign commerce by
public utilities which are regulated by the Public Utilities Commission of the
State of California.
Section 13. 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 ordinance.
(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 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 vessels and used or consumed by
such operators directly and exclusively 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 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.
(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 purchased 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 compensation 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 for the use tax.
Section 14. Application of Provisions Relating to Exclusions and Exemptions.
(a) Section 13 of this ordinance shall become operative on January
1st 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 12 of this ordinance shall become inoperative.
(b) In the event that Section 13 of this ordinance becomes oper-
ative and the State Board of Equalization subsequently 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 12
of this ordinance shall become operative on the first day of the month next follow-
ing the month in which such higher ratio is adopted, at which time Section 13 of
this ordinance 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
Page 3 Ord 5
property which is identical to the ratio required for local assessments by Section
401 of the Revenue and Taxation Code, at which time Section 13 shall again become
operative and Section 12 shall become inoperative.
Section 15. 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 ordin-
ance.
Section 16. 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 ordinance, 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 17. 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 more than $500.00 or by imprisonment for a period of not more
than six months, or by both such fine and imprisonment.
Section 18. Severability.
If any provision of this ordinance or the application thereof to any person
or circumstance is held invalid, the remainder of the ordinance and the application
of such provision to other persons or circumstances shall not be affected thereby.
Section 19. Effective Date.
This ordinance relates to taxes for the usual and current expenses of
the City and shall take effect immediately.
PASSED, APPROVED AND ADOPTED this 19th day of September, 1973, by vote
as follows:
AYES: Buerk, Dyda, Ruth, Ryan and Ryan
NOES: None
ABSENT: None
MAY V
/S/ MARILYN CORTINA
CITY CLERK
I HEREBY CERTIFY that the foregoing is a true and correct copy of Ordinance
No. 5 passed and adopted by the City Council of the City of Rancho Palos Verdes at
a meeting thereof held on the 19th day of September, 1973, and that said ordinance
was posted pursuant to law.
Fs)
CITY CLERK
Page 4 Ord 5
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss. AFFIDAVIT OF POSTING
CITY OF RANCHO PALOS VERDES )
The undersigned, being first duly sworn, deposes and says:
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That at all time herein mentioned, he/she was and now is the duly l•
Y qua �f red
and acting Deputy City Clerk of the City of Rancho Palos Verdes, California;
That on the `2,7 day of S2j 1 _.-73
Y T< r he/she
caused to be posted in three conspicuous places, as required by law,
(`. e.b. --44: 5-- , a copy of which is attached hereto i n the following
public places in this City:
1 . City Hall
31 244 Palos Verdes Drive West,
Palos Verdes Peninsula, Calif. 90274
(Suite 205)
2. Los Angeles County Fire Department, Mirale s e
Station
4000 Miraleste Plaza
M.raleste, California
3• Ridgecrest I ntermedicate School
28915 Northbay Road
Palos Verdes Peninsula, California
I certify under penalty of perjury that the foregoing is a true and correct
rY g 9 ect
affidavit of posting.
City Clerk, City of Ran ho Palos Verdes, Cali
,h
ti
By:•-
eputy City Clerk