CC RES 1973-033 RESOLUTION NO. 33
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES PROVIDING FOR ALL FUNCTIONS INCIDENT TO THE ADMINIS-
TRATION AND OPERATION OF LOCAL SALES AND USE TAXES, AND AUTHOR-
IZING EXECUTION OF A CONTRACT WITH THE STATE BOARD OF EQUALI-
ZATION WITH RESPECT THERETO
THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The Mayor of the City of Rancho Palos Verdes is hereby authorized
to execute, for and in behalf of the City of Rancho Palos Verdes, a contract with
the State Board of Equalization providing for all functions incident to the adminis-
tration and operation of the Uniform Local Sales and Use Tax Ordinance of the City
of Rancho Palos Verdes. A true and correct copy of said contract is attached hereto,
reference to which is hereby made.
PASSED, APPROVED AND ADOPTED this 7th day of September, 1973.
AYOR
ATTEST:
5 41./ i'?/ Ly 1,° c;- is ? i ' i4-
CITY CLERK
I HEREBY CERTIFY that the foregoing is a true and correct copy of
Resolution No. 33 passed and adopted by the City Council of the City of Rancho
Palos Verdes at a meeting thereof held on the 7th day of September, 1973.
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CITY CLERK
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Cit of RANCHO PALOS VERDES
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AGREEMENT FOR STATE ADMINISTRATION OF LOCAL SALES AND USE TAXES
To carry out Part 1.5 of Division 2 of the Revenue and Taxation Code and the sales and
use tax ordinance of the City hereinabove designated, hereinafter called the City, copy of which
ordinance is attached hereto, the City and the State Board of Equalization, hereinafter called
the Board, do agree as follows:
ARTICLE I
DEFINITIONS
11 U n 1 e s s the context requires otherwise, wherever the following terms appear in this
Agreement they shall be interpreted to mean the following:
1. "Local Taxes" shall mean the sales and use taxes, penalties, and interest imposed
by the City under an ordinance which complies with Part 1.5, Division 2, of the Revenue and
Taxation Code.
2. "Conforming Taxing Jurisdiction" shall mean any county, city, or city and county of
this State which has adopted a sales and use tax ordinance of the kind described in Part 1.5 of
Division 2 of the Revenue and Taxation Code and which has entered into a contract with the
State Board of Equalization to perform all functions incident to the administration and operation
of the ordinance.
3. "City Ordinance" shall mean the Uniform City Sales and Use Tax Ordinance attached
hereto, as amended from time to time.
ARTICLE II
ADMINISTRATION AND COLLECTION OF LOCAL TAXES
A. Administration. The Board and the City agree that the Board shall perform ex-
clusively all functions incident to the administration and operation of the City ordinance.
B. Other applicable laws. The City agrees that all provisions of law applicable to the
administration and operation of the State Sales and Use Tax Law shall be applicable to the
administration and operation of the City ordinance and that money collected pursuant to the City
ordinance may be deposited in the State Treasury to the credit of the Retail Sales Tax Fund and
may be drawn from that Fund for the purpose of making refunds, for the purpose of compensating
and reimbursing the Board pursuant to Article IV of this Agreement and for the purpose of trans-
mitting to the City the amount to which the City is entitled.
C. Transmittal of money. Except as otherwise provided herein, all local taxes collected
under the provisions of the City ordinance shall be transmitted to the City periodically as
promptly as feasible. Such transmittals shall be made at least twice in each calendar quarter.
Transmittals may be made by mail or by deposit to the account of the City in a bank in Sacra-
mento designated by the City. A statement shall be furnished indicating the amount withheld
pursuant to Article IV of this agreement.
D. Rules. The Board shall prescribe and adopt such rules and regulations as in its
judgment are necessary or desirable for the administration and operation of the City ordinance
and the distribution of the local taxes collected thereunder.
E. Preference. Unless the payor instructs otherwise and except as otherwise provided
in this Agreement, the Board shall give no preference in applying money received for sales and
use taxes owed by a taxpayer but shall apply all monies collected to the satisfaction of the
claims of the State and the claims of the City as their interests appear.
F. Security. The Board agrees that any security which it hereafter requires to be fur-
nished under the State Sales and .Use Tax Law will be upon such terms that it also will be
available for the payment of the claims of the City for local taxes owing to it as its interest
appears. The Board shall not be required to change the terms of any security now held by it and
the City shall not participate in any security now held by the Board.
G. Names of sellers. The Board agrees to furnish the names, addresses, account•num-
bers, and the business classification codes of all sellers holding sellers' permits within the
City.
H. Records of the Board. When requested by resolution of the City Council of the City,
the Board shall permit any duly authorized officer or employee of the City to examine the sales
and use tax records of the Board pertaining to sales and use taxes collected for the City by the
Board_pursuant to this Agreement. Information obtained by the City from the examination of the
Board's records shall be used by the City only for purposes related to the collection of local
sales and use taxes by the Board pursuant to this Agreement.
1. City tax rate. The City agrees that any change in the rate of its conforming local
sales and use tax will be made effective at the beginning of a calendar quarter and that it will
give the Board at least two months' notice thereof and that it will also give notice to the Board
of Supervisors of the County in which the City lies.
J. Annexation. The City agrees that the Board shall not be required to give effect to an
annexation, for the purpose of collecting and distributing city sales and use taxes, earlier than
the first day of the calendar quarter which commences not less than two months after notice to
the Board. The notice shall include two maps of the annexed area together with the address
of the property nearest to the extended city boundary on every street crossing that boundary.
ARTICLE III
ALLOCATION OF TAX
A. Deficiency determination. All local taxes collected as a result of determinations or
billings made by the Board, and all amounts refunded or credited may be distributed or charged
to the respective conforming taxing jurisdictions in the same ratio as the taxpayer's self-
declared local tax for the period for which the determination, billing, refund, or credit applies.
B. Allocation. When the local tax is collected from or refunded or credited to the
following:
(1) Retailers having traveling sellers' permits or certificates of authority to collect
use tax issued by the Board;
(2) Persons regarded by the Board as retailers pursuant to Section 6015 of the Reve-
nue and Taxation Code;
(3) Persons for whom no continuing account number was active at the date of pay-
ment; or
(4) Other retailers or purchasers having no permanent place of business within the
State as determined by the Board;
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or when the local tax is collected by way of deduction from, or when a refund of local tax is
made in conjunction with, refunds of motor vehicle fuel license taxes, or when local tax is col-
lected and direct allocation is impractical, the Board may distribute or charge such local tax to
all conforming taxing jurisdictions in the county in which the sale or use occurred using the
ratios reflected by the distribution of taxes collected from all other taxpayers in that county.
To the extent that this cannot be done in a manner consistent with the economic and efficient
• performance of the duties of the Board under the Revenue and Taxation Code and the provisions
of this Agreement, the Board may distribute or charge such local tax to all conforming taxing
jurisdictions of this State using the ratios reflected by the distribution of taxes collected from
all other taxpayers in the State. In making allocations under this paragraph county tax imposed
at a rate in excess of 1 percent shall be excluded.
C. Vehicles, Vessels, and Aircraft. For the purposes of allocating local tax with
respect to vehicles required to be registered or identified under the Vehicle Code, and with
respect to vessels and aircraft, the address of the registered owner appearing upon the applica-
tion for registration or identification may be used by the Board in determining the city of use.
To the extent this cannot be done in a manner consistent with the economic and efficient perfor-
mance of the duties of the Board under the Revenue and Taxation Code and this Agreement, the
Board may allocate tax with respect to such vehicles, vessels, and aircraft in the manner pro-
vided in Paragraph B of this Article.
ARTICLE IV
COMPENSATION
The City agrees to pay the Board as the Board's cost of administering the City ordi-
nances such amount as is provided by law. Such amounts shall be deducted from the taxes
collected by the Board for the City.
ARTICLE V
MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first-class United
States Mail. A notification is complete when deposited in the mail. Communications and notices
to be sent to the Board shall be addressed to:
State Board of Equalization
P.O. Box 1799
Sacramento, California 95808
Attention: Executive Secretary
Communications and notices to be sent to the City shall be addressed to:
Marilyn Ryan
31244 Palos Verdes Drive West
Suite 205
Palos Verdes Peninsula, California
B. Term. The date of this Agreement is the date on which it is approved by the De-
partment rtment of General. Services. The Agreement shall take effect on the first day of the calendar
quarter next succeeding the date of such approval, but in no case before the operative'date of
the City ordinance, nor on a day other than the first day of a calendar quarter. This.Agreement
shall continue until; September 30 next: following the operative date of the City ordinance, and
shall thereafter b e renewed automatically from year to year unless one of the parties gives
written notice of termination:at least two.months before the end of the term. The Board may ter-
thinate this Agreement: in the manner provided by law.
C. This Agreement replaceg and supersedes the Agreement dated
heretofore entered into by. the Board and the City, which prior Agreement is hereby terminated'.
STATE BOARD OF EQUALIZATION
By
Executive secretary
CITY OF
By
(Signature on this line)
(Type name here)
(Type title here)
BT-527'REV. 4 (8-73) - 4 -
B. Term. The date of this Agreement is the date on
which it is approved by the Department of General Services.
The Agreement shall take effect on the first day of the
calendar quarter next succeeding the date of such approval,
but in no case before the operative date of the City ordin-
ance, nor on a day other than the first day of a calendar
quarter. This Agreement shall continue until September 30
next following the operative date of the City ordinance, and
shall thereafter be renewed automatically from year to year
unless one of the parties gives written notice of termina-
tion at least two months before the end of the term. The
Board may terminate this Agreement in the manner provided by
law.
STATE BOARD OF EQUALIZATION
By
Executive Secretary
CITY OF RANCHO PALOS VERDES
By
Tgignature on t s lingT—
YN RYAN
(Type name here)
MAYOR
---7Type title here)
ARTICLE VI — TAXES AND LICENSES
. CHAPTER., :
AN ORDINANCE IMPOSING A SALES AND USE TAX TO BE
ADMINISTERED BY THE STATE BOARD OF EQUALIZATION
AND PROVIDING PENALTIES FOR VIOLATIONS
Section 1. SHORT TITLE. This ordinance shall be known as the Uniform Local Sales and Use Tax Ordinance.
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RATE. The rate of sales tax and use tax imposed by this ordinance shall be 1_ °
Section 2. T . Th p y
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:
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(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 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;
• (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 administrative
procedures followed by the State Board of Equalization in administering and collecting the California State
Sales and Use Taxes;
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(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. 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 contracted 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 or 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.
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Section 8. USE TAX. An excise tax is hereby imposed on the storage, use.or other consumption in this city
Sect i _
personal property purchased from any retailer on and after the operative date for storage, use or other
of tangible p P
in this city at the rate stated in Section 2 of the sales price of the property. The sales price shall
consumption Y
include
•nc l ude del iver y charges when such charges chs 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
ond except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxa-
• all of the provisions of Part 1 of Division 2 of the Revenue and Taxation Code are hereby adopted and
Taxa-
tion on Code,
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 me of this City shall be substituted 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
Stat P
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 substitution would require action to be token by or against the City, or
ony 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.
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(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
Port 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 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 distribution of electricity or in the manu-
facture, transmission 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.
ection 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.
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(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 neces-
sity issued pursuant to the laws of this state, the United States, or any foreign government is exempted
from 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 operative and the State Board of Equaliza-
tion 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 following 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
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 inopera-
tive.
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 ordinance.
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 punish-
able 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. SEVERABILITYO If any provision of this
ordinance or the application thereof to any person or cir-
cumstance is held invalid, the remainder of the ordinance and
the application of such provision to other persons or circum-
stances 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.
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) s s o
CITY OF RANCHO PALOS VERDES )
I� , City Clerk of the City of
Rancho Palos er es a i ornia o y
City hereby certify that the
whole number of members of the Cit Council of said City• that y City is
the foregoing ordinance, being Ordinance No. 2
was duly and regularly adopted by the City Council of said at are regular meeting y said
City g ing of said Council, duly and regularly
of September, a y
held on the 7th day p , 1973, and that the same was
so passed and adopted by the following vote:
AYES: COUNCILMEN:
NOES : COUNCILMEN:
ABSENT: COUNCILMEN: .
CITY CLERK of the City of Rancho Palos
Verdes
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