HomeMy WebLinkAbout652 - Excise Tax on Tangible Personal PropertyE
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ORDINANCE NO. 652
AN ORDINANCE OF THE CITY
OF NEWPORT BEACH D/I
POSING AN EXCISE TAX O
THE USE OR OTHER CON-
SUMPTION OF TANGIBLE
PERSONAL PROPERTY
The Council of the City of New-
port Beach does ordain as follows:
SECTION 1: Sections 6413 and
6514 of the Municipal Code of the
City of Newport Beach are hereby
repealed.
SECTION 2: There are hereby
added to the Municipal Code of
the City of Newport Beach, Sec-
tions 6413.1 through 6413.26 to
read as follows:
"Section 6413.1 'Use' Defined.
'Use' includes the exercise of any
right or power over tangible per-
sonal property incident to the
ownership of that property, sub-
ject, however, to the following ex-
emptions:
(a) It does not include the sale
of that property in the regular
course of business;
(b) It does not include the
keeping, retaining; or exercising of
any right or power over tangible
personal property shipped or
brought into this City and which
is thereafter transported outside
the City for principal use or con-
sumption outside the City, and
which property is actually so used
or consumed;
(c) It does not include the use
of such property for the purpose
of being, processed, fabricated, or
manufactured into, attached to or
incorporated into, other tangible
personal property which is to be
transported outside the City and
thereafter used principally outside
the City, or which is to be subse-
quently sold or resold in the regu-
lar course of business;
(d) It does not include the ex-
ercise of any right or power over
tangible personal property inci-
dent to ownership of that pro-
perty if such property was pur-
chased for principal use or con-
sumption outside the City and is
so used or consumed.
(e) It does not include the use
of tangible personal property ac-
tually employed in the transporta-
tion or transmission of persons,
property, gas, electricity or com-
munications in intra- state, inter-
state or foreign commerce by pub-
lic utilities regulated by the Pub-
lic Utilities Commission of the
State of California.
Section 6413.2 Imposition and
Rate of Tax. An excise tax is
hereby imposed on the use or
other consumption in the City of
Newport Beach of tangible per-
sonal property purchased from any
retailer on or after the effective
date of this ordinance for use '.or
other consumption in said City at
the rate of one (1) per cent of the
sales price of the property.
Section 6413.3 Use Tax Levied
in Same Manncr as State Tax. The
tax hereby levied, except as other-
wise herein provided, is levied in
the same manner, to the same ex-
tent and under the same conditions
as use taxes are levied pursuant
to Part I of Division 2 of the Cali-
fornia Revenue and Taxation Code,
known as the "Sales and Use Tax
Law ", as amended and in force
and effect on October 1, 1951.
Section 6413.4 Adoption of State
Use Tax Law by Reference. Ex-
ceptions. All the provisions of
the "Sales and Use Tax Law" as
amended and in force and effect on
October 1, 1951, except the pro-
visions visions thereof pertaining solely t
the "Sales Tax" and Sections 6008,
N 6201 to 6204, inclusive, 6207, 6226,
6241 to 6246, inclusive, 6403, 6453,
7052, 7056. 7057, 7101, 7102, 7151,
7152 and 7153, are hereby adopted
and made a part of this Ordinance
as though fully set forth herein,
and all provisions of any other or-
dinance in conflict therewith are
inapplicable to this Ordinance and
the tax hereby imposed; provided
that the term "sales price" shall
not include the amount of any
California State sales tax or use
tax, and that the word "storage"
shall for the purposes of this Ordi-
nance be deemed deleted from
those provisions of the California
Revenue and Taxation Code
adopted by reference, it being the
intent of the Council that the tax
imposed by this Ordinance shall
not apply to the storage of tan-
gible personal property.
All of the provisions of the
"Sales and Use Tax Law" hereby
adopted providing for the adoption
of rules and regulations and for
hearings on the part of the State
Board of Equalization shall be
performed by the Council of the
City of Newport Beach. All other
provisions of the State "Sales and
Use Tax Law" hereby adopted pro-
viding for the performance of offi-
cial action on the part of the State
Board of Equalization shall be per-
formed by the City Clerk.
The City of Newport Beach
shall be deemed substituted for
the State of California whenever
the State is referred to in said
"Sales and Use Tax Law ".
The City Attorney of Newport
Beach shall be deemed substituted
for the Attorney General when-
ever the Attorney General is re-
ferred to in said "Sales and Use
Tax Law ".
The City Auditor shall be
deemed substituted for the State
Controller and State Board of
Control whenever the State Con-
troller or State Board of Control
are referred to in said "Sales and
Use Tax Law ".
The County of Orange shall lie .
deemed substituted for the County
of Sacramento whenever the
County of Sacramento is referred
to in said "Sales and Use Tax
Law ".
Section 6413.5 Adoption of
Rules and Regulations by Refer-
ence. The rules and regulations
of the State Board of Equalization
pertaining to the interpretation,'
administration and enforcement of
the "Sales and Use Tax Law ", in-
sofar as applicable, shall apply to
the interpretation of this ordin-
ance until specifically abandoned
by the rules and regulations
adopted by The Council pursuant
to this ordinance.
Section 6413.6 Interpretation.
The inclusion of any clause, por-
tion or part of the "Sales and Use
Tax Law ", Part 1, Division 2 of
the Revenue and Taxation Code
of the State of California, verba-
tim in this ordinance shall not in
or of itself be deemed to exclude
any of the remaining provisions
of said "Sales and Use Tax Law"
that are made a part hereof by
reference only.
Section 6413.7 Duty to Collect
Tax. Every retailer maintaining
a place of business in this City
shall apply to the City Clerk for
authorization to collect the tax
imposed by this ordinance. Any
retailer not maintaining a place
0 of business in this City may apply
to the City Clerk for authorization
to collect the tax hereby imposed.
Upon receipt of any application
in such form as required by him,
the City Clerk, in the case of a re-
tailer maintaining a place of busi-
ness in this City shall authorize,
and in the case of a retailer not
maintaining a place of business in
the City, may authorize the appli-
cant to make such collections and
to forward the same to the City
Clerk.
Section 6413.8 Persons Liable
to Tax. Every person using or
otherwise consuming in this City
tangible personal property per -
chased from a retailer, is liable for
the tax; provided however, no tax
shall be due hereunder if the tax
imposed by Sections 6400 through
6412 of the Municipal Code of the
City of Newport Beach has been
paid on the sale of such property.
The liability of such person is not
extinguished until the tax has been
paid to the City of Newport Beach
except that a receipt from a re-
tailer authorized pursuant to Sec-
tion 6413.7 hereof to collect the
tax, given to the purchaser pursu-
ant to Section 6413.9 hereof, is
sufficient to relieve the purchaser
from further liability for the tax
to which the receipt refers.
Section 6413.9 Collection of Tax
by Retailer. Every retailer who
is authorized by the City Clerk to
collect the tax imposed by this or-
dinance and who makes sales of
tangible personal property for use
or other consumption in this City,
not exempted under the provisions
of this ordinance, shall collect the
tax from the purchaser at the time
of making the sale, or, if the use
or other consumption of the tan -
gible personal property is not then
taxable hereunder, at the time the
use or other consumption becomes
taxable. Upon collecting the tax,
the retailer on demand, shall give
to the purchaser a receipt there-
for in the manner and form pre-
scribed by the City Clerk. The
tax so collected by the retailer
shall be held in trust by him for
the City and shall be paid to the
City by the retailer in the manner
and at the times elsewhere pro-
vided in this ordinance.
Section 6413.10 Separate Dis-
play of Tax From List or. Other
Price. The tax so collected by the
retailer from the purchaser shall
be displayed separately from the
list price, the price advertised in
the premises, the marked price or
other price on the sales check or
other proof of sale.
Section 6413.11 Personal Pro-
perty to Which Tax Applies. Ex-
cept as otherwise specifically ex-
empted, the tax hereby imposed
applies to all tangible personal
property located in this City and
purchased from a retailer; provid-
ed, however, that if the retailer
in good faith takes from the pur-
chaser a certificate that the pro-
perty was purchased prior to.the
effective date of this ordinance or
was not purchased for use or con-
sumption in this City and has not
been nor will be so used or con-
sumed, he shall be relieved of lia-
bility to collect and pay the tax.
The certificate shall be signed by
and bear the name of the pur-
chaser, shall indicate the address
of the purchaser and the place
where such tangible personal pro-
perty will be used or consumed,
the date of purchase, and shall be
Clerk deems necessary to the
Successors, receivers, trustees, exe-
substantially in such form as .the
proper administration of this or-
cutors, administrators, assignees,
City Clerk may prescribe.
dinance.
and guarantors, if directly inter -
Section 6413.12 Exemptions. In
Section 6413.16 Extension of
ested, may be given information
addition to those exemptions con-
Time. Waiver or Compromise. The
as to the items included in the
tained in Part 1 of Division 2 of
City Clerk shall have power, for
measure and amounts of any un-
the California Revenue and Tax-
good cause shown, to extend for
paid tax or amounts of tax re-
ation Code which are incorporat-
a period of not to exceed thirty-
quired to be collected, interest and
ed into this ordinance by refer-
one (31) days the time for making
penalties.
ence, there shall be excluded from
any return or paying any amount
Section 6413.22 False and Fraud-
the computation of the tax the
required to be paid under this or-
silent Returns. No person required
sales price of:
dinance, when requested so to do
to make, render, sign or verify
(a) Purchases made by the
in writing, before the same be-
any report under the provisions
State of California or by any
comes delinquent. The City Clerk
of this ordinance, shall make any
agency, department, political sub-
may, with the written approval
false or fraudulent return, with
division, district or municipal cor-
of the City Attorney, waive or
intent to defeat or evade the de-
poration thereof;
compromise any penalty or inter-
termination of an amount due and
(b) Purchases of tangible per-
est that would otherwise accrue
required to be paid hereunder.
sonal property to be used in con-
under the provisions of this ordi-
Section 6413.23 Failure to Make
nection with the erection, con-
nance. The City Clerk shall make
Return or Furnish Data. No re-
struction, repair or alteration of
and transmit to the Council quar-
tailer or other person shall fail
either public works or buildings
terly, a detailed report of any
or refuse to furnish a supplemen-
belonging to or being constructed
sums so waived or compromised
tal return or other data required
by or on behalf of or for the use
with the reasons therefor.
by the City Clerk, or render a
of the United States Government,
Section 6413.17 Schedules for
false or fraudulent return.
the State of California or any
Payment of Tax. The Council, by
Section 6413.24 Penal Provis-
agency, department, political sub-
resolution, shall adopt rules pre-
ions. Any person violating any
division, district or public or mu-
scribing methods and schedules
provision of this ordinance shall
nicipal corporation of the State;
for the collection and payment of
be guilty of a misdemeanor, and
(c) Purchases made pursuant
the tax. Such schedules shall be
upon conviction thereof shall be
to contracts actually executed in
so determined as to facilitate col-
punishable by a fine of not more
good faith prior to October 8,1951;
lection of this tax at the same
than Five Hundred Dollars ($500. -
(d) Purchases of property upon
time that the retailer collects the
00), or by imprisonment in the
which a sales tax, purchase tax,
tax imposed under the California
City Jail of the City of Newport
use tax, purchase and use tax, or
Sales and Use Tax Law and so to
Beach or the County Jail of the
any of them, has been legally im-
Produce an average tax return of
County of Orange for a period of
posed by and paid on the same
one percent 0%) on all purchases
not more than six (6) months or
transaction to any city of the
subject to the use tax.
by both such fine and such impris-
State of California.
Section 6413.18 Suit for Tax.
onment.
Section 6413.13 Registration of
All taxes hereby levied shall be
Section 6413.25 Validity. If any
Retailers. Every retailer selling
payable to the City Clerk and any
section, subsection, sentence,
tangible personal property for use
civil suit for the collection there-
clause, phrase, or portion of this
or other consumption in the City
City
of may be filed in any court of
ordinance is for any reason held to
of Newport Beach and which
. competent jurisdiction in the State
be invalid or unconstitutional by
. maintains a place of bugh,
of California, and the City Attor- I
the decision of any court of corn-
ness
ness in said City or acts through'
ney of said City shall prosecute
P
etent
P jurisdiction, such decision
agents located in said City and
the action.
shall not affect the validity of the
•
which retailer is not licensed un-
Section 6413.19 Resale Certifi-
remaining portions of this ordi-
der the provisions of Sections 6400
cate. The City Clerk may at his
nance. The Council of this City
through 6412 of the Municipal
option accept a State of California
hereby declares that it would have
Code of the City of Newport
Resale Certificate as evidence that
adopted this ordinance and each
Beach, shall register with the City
any sale is not a sale for use or
section, subsection, sentence,
Clerk and give the name and ad-
consumption in the City of New-
clause, phrase, or portion thereof,
drewdress of such agent or agents and
port Beach, or he may in his dis-
irrespective of the fact that any
or other place of business
cretion require an affidavit from
one or more sections, subsections,
in the Cit t'
the seller setting forth such in-
sentences, clauses, phrases or por-
Section 6413.14 Due Data of
formation respecting such sale as
tions be declared invalid or un-
Taxes. Taxes imposed by this Or-
lie deems necessary to determine
constitutional.
dinance are due and payable to
the nature of such sale.
Section 6413.26 Effective Date.
the City Clerk on or before the
Section 6413.20 Disposition of
This ordinance, inasmuch as it pro -
last day of the month next suc-
Proceeds. All monies collected un-
der
vides for a tax levy for the usual
ceeding each quarterly period, the
and pursuant to the provis-
current expenses of the city, shall,
first quarterly payment to be due
ions of this ordinance shall be de-
under the provisions Section 1
and payable
P Y under this ordinance
posited and paid into the General
of Article IV of the Constitution,
C
on or before the last day of Janu-
Fund of the City of Newport
take effect immediately."
ary, 1952. The City Clerk may
require returns
Beach.
Section 6413.21 Divulging of In-
n
SECTION is This ordinance r a
shall be published at least once in
and payment of
P Y
the amount of taxes for quarterly
formation Forbidden. officer
the Newport Harbor Ensign, a
periods other than calendar
or employee of the City of New-
newspaper of general circulation,
quar-
ters depending upon the principal
port Beach having an administra-
printed and published in the City
place of or the nature of the busi-
tive duty under this ordinance
of Newport Beach and shall be in
ness the
shall make known in any manner I
force and effect immediately upon
seller or retailer or
re
may require returns and payment
whatever the business affairs, op-
erations, or information
its final passage.
The
of the amount of taxes for other
than quarterly
obtained
by an investigation of records and I
above and foregoing ordi-
nance was introduced at a regular
periods.
Section 6413.15 Returns. Each
equipment of any retailer or any
meeting of the City Council of the
return filed by a retailer shall
other person visited or examined in
the discharge of official duty the
City of Newport Beach, held on
the 24th
show the total sale price of the
or
amount or income,
day of September, 1951,
property sold by him during the
reporting in
source of
profits, losses, expenditures, or an
and was finally , passed and
adopted on the 8th day f October,
period respect of
which he collected the tax hereby
particulars thereof, set forth or
disclosed in any
1.551 by the following vote,-to wit:
imposed. Each return filed by a
return, or permit
any return or copy thereof or any
AYES, COUNCILMEN: Finch
Ramsey, Greeley, Isbell
purchaser shall show the total
sale price of the property
book containing any abstract or
IdOE COUNCILMEN: None
pur-
chased by him during the report-
particulars thereof to be seen or
ABSENT COUNCILMEN: Blue
in,- Period, in respect of which a
tax is
examined by any person. How-
ever, the Council may, by resolu-
L. L. ISBELL
Ma or
•
due under this ordinance.
All returns shall
tion, authorize examination of the
ATTEST: Y
also show the
amount of the taxes for the period
returns by Federal or State offi-
cers or employees or by the tax
C. K. PRIEST
covered by the return and such
other information
officers of this or any other city
City Clerk
Publish: Oct. 11, 1951
as the City
if a reciprocal arrangement exists. 1
in the Newport Harbor Ensign.
•
STATE OF CALIFORNIA
COUNTY OF ORANGE SS.
CITY OF NEWPORT BEACH
I- ------------------------- Q . --- R._- P.$IEST----------------- ._.._ City Clerk of the City of Newport
Beach, California, do hereby certify that the foregoing ----------- QT' d1a an- 4- e--------------------------------------------
No --------- 65? ------------------- was duly and regularly adopted, passed, and approved by the City Council
of the City of Newport Beach. California, at a regular meeting of said City Council held at the
regular meeting place thereof, on the ------- th- -------- day. of ----------------------- Qto er_-- ___-------- .19 -51_-
by the following vote:
AYES: COUNCILMEN ------ lnoh,- .- Ramse- yr- -fir -e- elegy-,.-- Ishe- 11----------------------------------------
NOES: COUNCILMEN. -- -None
ABSENT: COUNCI
Dated this --- 2?th --------- day of
ti
NB 130 - 500 -6/51
-------- 0- ctober -------------------------------------------- 1951 - --
----- - - - - -- -. '-------------- - - - - --
City Clerk and Ex- Officio Clerk of the City Council,
City of Newport Beach. State of California
Me