HomeMy WebLinkAbout791 - Excise Tax on Personal Property•
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ORDINANCE NO. 791
AN ORDINANCE OF THE
CITY OF NEWPORT BEACH
ADDING PART II, SECTIONS
6460 -6484 TO CHAPTER IV
OF ARTICLE VI OF THE
MUNICIPAL CODE, IMPOS-
ING AN EXCISE TAX ON
THE STORAGE, USE OR
OTHER CONSUMPTION OF
TANGIBLE PERSONAL PRO-
PERTY.
The City Council of the City of
Newport Beach does ordain as
follows:
SECTION 1: That Part II, Sec-
tions 6460 through and including
6484 be added to Chapter IV of
Article VI of the Municipal Code
of the City of Newport Beach to
read as follows:
"PART II. USE TAX.
"Section 6460. DEFINITIONS.
The following words and phrases,
whenever used in Part II of this
chapter, shall be construed as
defined in this section unless it
appears from the context that a
different meaning is intended.
"A. 'Sales price' means that
total amount for which tangible
personal property Is sold valued
in money, whether paid in money
or otherwise, without any deduc.
tion on account of any of the fol-
lowing:
"(1) The cost of the property
sold;
"(2) The cost of materials
used, labor or service cost, In-
terest charged, losses, or any
other expenses;
"(3) The cost of transporta-
tion of the property prior to its
purchase.
The total amount for which the
property is sold includes all of
the following:
"(1) Any services that are a
part of the sale;
"(2) Any amount for which
credit Is given to the purchaser
by the seller.
'Sales price' does not include any
of the following:
"(1) Cash discounts allowed
and taken on sales;
"(2) The amount charged for
property returned by customers
when that entire amount is re-
funded either in cash or credit,
but this exclusion shall not ap-
ply in any instance when the
customer, In order to obtain the
refund, is required to purchase
other property at a price greater
than the amount charged for the
Property that Is returned.
"(3) The amount charged for
labor or services rendered In
installing or applying the pro-
perty sold.
"(4) The amount of any fed-
eral tax imposed upon or with
respect to retail sales whether
imposed upon the retailer or
upon the consumer and regard-
less of whether or not the
amount of federal tax Is stated
to customers as a separate
charge, and the amount of any
California state sales or use tax.
(The term 'gross receipts' in-
cludes the amount of any manu-
facturer's or importer's excise tax
included in the price of the pro-
perty sold, even though the
manufacturer or importer is also
the retailer thereof, and whether
or not the amount of such tax is
stated as a separate charge.)
"(5) Tansportation c h a r g e s
separately stated if the trans-
portation occurs after the pur-
chase of the property is made.
"B. 'Use' includes the exercise
of any right or power over tan-
gible personal property incident
to the ownership of that pro-
perty; subject, however, to' the
following exceptions:
"(1) It does not include the
sale of that property in the regu-
lar course of business.
"(2) It does not include the
storage, use or other consump.
tion of tangible personal pro.
perty, 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, whether enacted in ac-
cordance with, or purporting to
be in accordance with, Part 1.5 of
Division 2 of the Revenue and
Taxation Code of the State of
California by any other city and
county, county other than Or.
ange County, or city in this state,
or enacted in accordance with
the organic law of any such city.
"(3) It does not include the
storage or use of tangible per.
sonal property in the transporta-
tion or transmission of persons,
Property or communications, or
in the generation, transmission
or distribution of electricity or
in the manufacture, transmission
or distribution of gas in intra.
state, interstate or foreign com-
merce by public utilities which
are regulated by the Public Utili-
ties Commission of the State of
California.
"(4) It does not include the
use or consumption of property
purchased by operators of com-
mon carrier and waterborne ves-
sels to be used or consumed in
the operation of such common
carriers or waterborne vessels
principally outside the City.
"C. The word 'storage; as
used in this article, includes any
keeping or retention in the City
for any purpose except sale In
the regular course of business or
subsequent use solely outside
this City of tangible personal
property purchased from a re-
tailer.
"Section 6461. IMPOSITION
AND RATE OF TAX. An excise
tax is hereby imposed on the
storage, use or other consump-
tion in the City of Newport Beach
of tangible personal property
Purchased from any retailer on
or after April 1, 1956 for storage,
use or other consumption in said
City at the rate of one percent
(1 01o) of the sales price of the
property.
"Notwithstanding the foregoing
provisions of this section, where
the sales price of tangible per-
sonal property purchased for
storage, use or other consump-
tion in the City of Newport Beach
pursuant to a contract of sale
actually executed In good faith
prior to April 1, 1956, includes
Newport Beach City sales or use
tax, the rate of tax applied shall
be that rate In effect when the
contract is executed.
"Section 6462. USE TAX LEVI.
ED IN SAME MANNER AS
STATE TAX. The tax hereby
levied, except as otherwise here-
in provided, is levied In the same
manner, to the same extent and
under the same conditions as use
taxes are levied pursuant to Part
I of Division 2 of the California
Revenue and Taxation Code,
known as the'Sales and Use Tax
Law' as amended and in force
and effect on April 1, 1956.
"Section 6463. ADOPTION OF
STATE USE TAX LAW BY REF.
ERENCE.
EXCEPTIONS.
"A. All of the provisions of
the 'Sales and use Tax Law' as
amended and in force and effect
on April 1, 1956, except the pro.
visions pertaining solely to the
'Sales Tax' and Sections 6008,
6009, 6011, 6201 to 6204, inclu.
sive, 6207, 6226, 6241 to 6246,
inclusive, 6355, 6403, 6453, 7052,
7056, 7057, 7101, 7102, 7151, 7152
and 7153, are hereby adopted and
made a part of Part II of this
chapter as though fully set forth
herein, and all provisions of any
other ordinance in conflict there.
with are Inapplicable to Part II
of this chapter and the tax here-
by imposed.
"B. The term 'sales price' shall
not include the amount of any
California state sales tax or use
tax.
"C. 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 City
Council of the City of Newport
Beach. All other provisions of the
state 'Sales and Use Tax Law'
hereby adopted providing for the
performance of official action on
the part of the State Board of
Equalization shall be performed
by the City Director of Finance.
"D. The City of Newport
Beach shall be deemed substi-
tuted for the State of California
whenever the state is referred to
In said 'Sales and Use.Tax Law.'
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"E. The City Attorney of New-
port Beach shall be deemed sub-
stituted for the Attorney General
whenever the Attorney General
is referred to in said 'Sales and
Use Tax Law.'
"F. The City Director of Fi-
nance shall be deemed substi-
tuted for the State Controller and
State Board of Control whenever
the State Controller or State
Board of Control are referred to
in said 'Sales and Use Tax Law:
"G. The County of Orange
shall be deemed substituted for
the County of Sacramento when-
ever the County of Sacramento Is
referred to in said 'Sales and Use
Tax Law.'
"Section 6464. ADOPTION OF
RULES AND REGULATIONS BY
REFERENCE. The rules and reg-
ulations of the State Board of
Equalization pertaining to the
Interpretation, a d m I n i stration
and enforcement of the 'Sales
and Use Tax Law; insofar as ap-
plicable, shall apply to the inter-
pretation of Part II of this chap-
ter until specifically abandoned
by the rules and regulations
adopted by the City Council pur-
suant to Part II of this chapter.
"Section 6465. INTERPRETA-
TION. The inclusion of any
clause, portion or part of the
'Sales and Use Tax Law,' Part 1,
Division 2, of the Revenue and
Taxation Code of the State of
California, verbatim In Part II of
this chapter 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 6466. DUTY TO COL-
LECT TAX. Every retailer main-
taining a place of business in
this City shall apply to the City
Director of Finance for authori-
zation to collect the tax imposed
by Part II of this chapter. Any
retailer not maintaining a place
of business In this City may
apply to the City Director of Fi-
nance for authorization to collect
the tax hereby imposed. Upon re-
ceipt of any application In such
form as required by him, the City
Director of Finance, in the case
of a retailer maintaining a place
of business In the City, shall au-
thorize, and In the case of a re-
tailer not maintaining a place of
business In the City, may author-
ize the applicant to make such
collections and to forward the
same to the City Director of Fi-
nance.
"Section 6467. PERSONS LI-
ABLE TO TAX. Every person
storing, using or otherwise con-
suming in this City tangible per-
sonal property purchased from
a retailer, Is liable for the tax;
provided, however, no tax shall
be due hereunder if the tax im-
posed by Part I of Chapter IV of
Article VI 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 retailer authorized
pursuant to Section 6466 hereof
to collect the tax, given to the
purchaser pursuant to Section
6468 hereof, Is sufficient to re-
lieve the purchaser from further
liability for the tax to which the
receipt refers.
"Section 6468. COLLECTION
OF TAX BY RETAILER. Every
retailer who is authorized by the
City Director of Finance to col-
lect the tax imposed by Part II
of this chapter and who makes
sales of tangible personal pro-
perty for storage, use or other
consumption in this City, not ex.
empted under the provisions of
Part II of this chapter, shall col.
lect the tax from the purchaser
at the time of making the sale,
or, if the storage, use or other
consumption of the tangible per-
sonal property is not then tax.
able hereunder, at the time the
storage, use or other consump.
tion becomes taxable. Upon col.
lecting the tax, the retailer, on
demand, shall give to the pur-
chaser a receipt therefor in the
manner and form prescribed by
the City Director of Finance. 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 else-
where provided in Part II of this
chapter.
"Section 6469. SEPARATE DIS.
PLAY OF TAX FROM LIST OR
OTHER PRICE. The tax so col-
lected 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 6470. PERSONAL PRO-
PERTY TO WHICH TAX AP.
PLIES. Except as otherwise spe-
cifically exempted, the tax here.
by imposed applies to all tangi-
ble personal property located In
this City and purchased from a
retailer; provided, however, that
if the retailer In good faith takes
from the purchaser a certificate
that the property was purchased
prior to April 1, 1956, or was not
purchased for storage, use or
consumption In this City and
has not been nor will be so
stored, used or consumed, he
shall be relieved of liability to
collect and pay the tax. The cer.
tificate shall be signed by and
bear the name of the purchaser,
shall indicate the address of the
purchaser and the place where
such tangible personal property
will be stored, used or consumed,
the date of purchase, and shall
be substantially In such form as
the City Director of Finance may
prescribe.
"Section 6471. REGISTRATION
OF RETAILERS. Every retailer
selling tangible personal pro-
perty for storage, use or other
consumption in the City of New-
port Beach and which retailer
maintains a place of business in
said City or acts through agents
located In said City and which
retailer is not licensed under the
provisions of Part I of Chapter
IV of Article VI of the Municipal
Code of the City of Newport
Beach (sales tax) shall register
with the City Director of Finance
and give the name and address
of such agent or agents and of-
fice or other place of business
In the city.
. "Section 6472. DUE DATE OF
TAXES. Taxes imposed by Part
II of this chapter are due and
payable to the City of Newport
Beach on or before the last day
of the month next succeeding
each quarterly period, the first
quarterly payment to be due and
payable under Part II of this
chapter on or before the last day
of July, 1956. The City Director
of Finance may require returns
and payment of the amount of
taxes for quarterly periods other
than calendar quarters depend -
Ing upon the principal place of
or the nature of the business of
the seller or retailer or may re-
quire returns and payment of the
amount of taxes for other than
quarterly periods.
"Section 6473. RETURNS. Each
return filed by a retailer shall
show the total sale price of the
property sold by him during the
reporting period in respect of
which he collected the tax here-
by Imposed. Each return filed by
a purchaser shall show the total
sale price of the property pur-
chased by him during the re-
porting period, In respect of
which a tax Is due under Part II
of this chapter. All returns shall
also show the amount of the
taxes for the period covered by
the return and such other infor-
mation as the City Director of Fi-
nance deems necessary to the
proper administration of Part II
of this chapter.
"Section 6474. EXTENSION OF
TIME. WAIVER OR COMPRO-
MISE. The City Director of Fi-
nance shall have the power, for
good cause shown, to extend for
a period of not to exceed thirty -
one (31) days the time for mak-
ing any return or paying any
amount required to be paid
under Part II of this chapter,
when requested so to do in writ -
Ing, before the same becomes de-
linquent. The City-Director of Fi-
nance may, with- the written ap-
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proval of the City Attorney,
waive or compromise any pen-
alty or interest that would other•
wise accrue under the provisions
of Part 11 of this chapter. The
City Director of Finance shall
make and transmit to the City
Council quarterly a detailed re-
port of any sums so waived or
compromised with the reasons
therefor.
"Section 6475. SCHEDULES
FOR PAYMENT OF TAX. The
City Council by resolution shall
adopt rules prescribing methods
and schedules for the collection
and payment of the tax. Such
schedules shall be so determined
as to facilitate collection of this
tax at the same time that the
retailer collects the tax imposed
under the California Sales and
Use Tax Law and so as to pro-
duce an average tax return of
one percent (1 %) on all pur-
chases subject to the use tax.
"Section 6476. SUIT FOR TAX.
All taxes hereby levied shall be
payable to the City Director of
Finance and any civil suit for
the collection thereof may be
filed in any court of competent
jurisdiction In the State of Cali-
fornia, and the City Attorney of
said City shall prosecute the ac-
tion.
"Section 6477. RESALE CER-
TIFICATE. The City Director of
Finance may at his option ac-
cept a State of California Resale
Certificate as evidence that any
sale is not a sale for storage,
use or consumption in the City of
Newport Beach, or he may In his
discretion require an affidavit
from the seller setting forth such
information respecting such sale
as he deems necessary to deter-
mine the nature of such sale.
"Section 6478. DISPOSITION
OF PROCEEDS. All monies col-
lected under and pursuant to the
provisions of Part 11 of this chap-
ter shall be deposited and paid
into the General Fund of the City
of Newport Beach.
"Section 6479. DIVULGING OF
INFORMATION FORBIDDEN. No
officer or employee of the City
of Newport Beach having an ad-
ministrative duty under Part 11
of this chapter shall make
known in any manner whatever
the business affairs, operations,
or information obtained by an
investigation of records and
equipment of any retailer or any
other person visited or examined
in the discharge of official duty,
or the amount or source of in-
come, profits, losses, expendi-
tures, or any particulars thereof,
set forth or disclosed in any re-
turn, or permit any return or
copy thereof or any book con-
taining any abstract or particu-
lars thereof to be seen or ex-
amined by any person. However,
the City Council may, by resolu-
tion, authorize examination of
the returns by federal or state
officers or employees or by the
tax officers of this or any other
city if a reciprocal arrangement
exists. Successors, receivers, trust-
ees, executors, administrators,
assignees, and guarantors, If di-
rectly interested, may be given
Information as to the items in-
cluded in the measure and
amounts of any unpaid tax or
amounts of tax required to be
collected, interest and penalties.
"Section 6480. FALSE AND
FRAUDULENT RETURNS. No per-
son required to make, render,
sign or verify any report under
the provisions of Part 11 of this
chapter shall make any false or
fraudulent return, with intent to
defeat or evade the determina-
tion of an amount due and re-
quired to be paid hereunder.
"Section 6481. FAILURE TO
MAKE RETURN OR FURNISH
DATA. No retailer or other per-
son shall fall or refuse to fur-
nish any return required to be
made or fail or refuse to furnish
a supplemental return or other
data required by the City Direc•
for of Finance, or render a false
or fraudulent return.
"Section 6482. PENAL PROVI-
SlONS. Any person violating any
provision of Part 11 of this chap-
ter shall be guilty of a misde-
meanor, and upon conviction
thereof shall be punishable by
a fine of not more than Five
Hundred Dollars ($500.00), or by
imprisonment in the City Jail of
the City of Newport Beach or the
County Jail of the County of
Orange for a period of not more
than six months, or by both such
fine and imprisonment.
"Section 6483. VALIDITY. If
any section, subsection, sentence,
clause, phrase, or portion of Part
11 of this chapter is for any rea•
son held to be invalid or uncon-
stitutional by the decision of any
court of competent jurisdiction,
such decision shall not affect the
validity of the remaining por-
tions of Part 11 of this chapter.
The City Council of this City
hereby declares that it would
have adopted Part 11 of this
chapter and each section,
subsection, sentence, clause,
phrase, or portion thereof, irre-
spective of the fact that any one
or more sections, subsections,
sentences, clauses, phrases or
portion be declared invalid or
unconstitutional.
"Section 6484. O P E R A T 1 V E
DATE. Part 11, Sections 6460 to
and including Section 6484 of
Chapter 1V of Article Vl of the
Municipal Code, shall be opera-
tive as of April 1, 1956.
"The purpose of this ordinance
is to amend Chapter 1V of Article
Vl of the Municipal Code of the
City of Newport Beach by substi-
tuting Part 1, Sections 6426 to
and including Section 6449 and
Part 11, Sections 6460 to and in-
cluding Section 6484 of Chapter
IV of Article Vl of said Munici-
pal Code, in place of Sections
6400 to and including Section
6425 of Chapter 1V of Article Vl
of said Municipal Code which
were and are suspended by City
Ordinance No. 772 as of April
1, 1956.
"If for any reason it is deter•
mined that said Sections 6460 to
and including Section 6484 of
Part 11 of Chapter 1V of Article
Vl of the Municipal Code of the
City of Newport Beach are not
operative as of April 1, 1956, then
in that event, said sections shall
be operative as of July 9, 1956.
SECTION 2: This ordinance,
inasmuch as It provides for a
tax levy for the usual current
expenses of the City of Newport
Beach, shall take effect immedi-
ately upon the passage thereof
and shall be published once in
the NEWPORT HARBOR EN-
SIGN, a newspaper of general
circulation printed and pub•
lished and circulated In the City
of Newport Beach.
The above and foregoing ordi-
nance was introduced and
adopted at a regular meeting of
the City Council of the City of
Newport Beach held on the 9th
day of July, 1956, by the follow-
ing vote, to -wit:
AYES, COUNCILMEN: Hart,
Wilder, MacKay, Higble, Ridder-
hof, Hill.
NOES, COUNCILMEN: None.
ABSENT COUNCILMEN: Stod-
dard.
ATTEST:
MARGERY SCHROUDER
City Clerk
DORA O. HILL
.Mayor
STATE OF CALIFORNIA
COUNTY OF ORANGE �SS.
CITY OF NEWPORT BEACH
Margery schrouder
I- -------------------------------------------------------------..- .---------- ---- --------- -- ---- City Clerk of the City of Newport
Beach, California, do hereby certify that the foregoing Ordinance
Y Y 9 9 - - -- - - - - - -.
No ---------- 91 ................... 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
9th July 56
regular meeting place thereof, on the ----------- ------ - - - - -- - day, of -------------------------------------------------------------- 19---------
by the following vote:
Hart, Wilder, MacKay, Higbie, Ridderhof, Hill
AYES: COUNCILMEN - - - -
None
NOES: COUNCILMEN ------------------
ABSENT: COUNCILMEN - - - -- Stoddard
Dated this - 3rd August
-- ---- -- ------day of --------------- ---------- ------------------------------------ -- -- -------- ------- ------- ----- I 6
NB 130 - 500 -6/51
City Clerk an Ex -Offs io Clerk of the City Council,
City of Newport Beach, State of California