HomeMy WebLinkAbout1514 - Sales & Use TaxORDINANCE NO. 1514
• AN ORDINANCE OF THE CITY OF NEWPORT BEACH
AMENDING CHAPTER 3.04 OF THE NEWPORT BEACH
MUNICIPAL CODE, ENTITLED "SALES AND USE TAX ",
TO INCORPORATE RECENT CHANGES IN STATE
LEGISLATION PERTAINING TO SALES AND USE TAX
TO BE ADMINISTERED BY THE STATE BOARD OF
EQUALIZATION
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The City Council of the City of Newport Beach DOES
ORDAIN AS follows:
SECTION 1. Chapter 3.04 of the Newport Beach Municipal
Code is amended-to read:
Sections:
3.04.010
3.04.020
3.04.030
3.04.040
3.04.050
3.04.060
3.04.070
3.04.08.0
3.04.090
3.04.100
3.04.110
3.04.120
3.04.130
3.04.140
3.04.150
3.04.160
3.04.170
3.04.180
"Chapter 3.04
SALES AND USE TAX
Short Title.
Rate.
Purpose.
Operative Date.
Sales Tax.
Place of Sale.
Use Tax.
Adoption of Provisions of State Law.
Limitations on Adoption of State Law..
Permit Not Required.
Exclusions and Exemptions - Measure of Tax.
Exclusions and Exemptions - Amount Subject
to Tax.
Application of Provisions Relating to
Exclusions and Exemptions.
Amendments.
Enjoining Collection Forbidden.
Penalties.
Severability.
Repeals.
3.04.010 Short Title. This Chapter shall be known as
the "Uniform Local Sales and Use Tax Ordinance" of the City
of Newport Beach.
3.04.020 Rate. The rate of sales tax and use tax imposed
by this ordinance shall be one per cent (1%).
3.04.030 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
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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;
(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 Revaue 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.
3.04.040 Operative Date. Ordinance , codified
in this Chapter, shall become operative on January 1, 1974,
and prior thereto 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
calendar quarter following the execution of such a contract by
the City and by the State.
3.04.050 Sales Tax. For the privilege of selling
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tangible personal property at retail a tax is hereby imposed
upon all retailers in the City at the rate of 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.
3.04.060 Place of Sale. For the purposes of this
Chapter, 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.
3.04.070 Use Tax. 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 of 1% 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.
3.04.080 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.
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3.04.090 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 City of
Newport Beach shall be substituted therefor. The substitu-
tion, 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 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 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
of the State of California, where the result of the substitu-
tion 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 defini-
tion of that phrase in Section 6203.
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3.04.100 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.
3.04.110 Exclusions and Exemptions - Measure of
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.
(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 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 manufacture,
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.
3.04.120 Exclusions and Exemptions - Amount Subject to
Tax. (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
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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
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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.
3.04.130 Application of Provisions Relating to
Exclusions and Exemptions. (a) Section 3.04.120 of this
Chapter 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 3.04.110 of this Chapter shall become
inoperative.
(b) In the event that Section-3.04.120 of
this Chapter becomes operative 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 3.04.110 of this
Chapter 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 3.04.120 of this Chapter
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 3.04.120 shall again become operative and Section
3.04.110 shall become inoperative.
3.04.140 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 automatic -
all y become a part of this ordinance.
3.04.150 Enjoining Collection Forbidden. No injunction
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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.
3.04.160 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
as provided in Section 1.04.010 of this Code.
3.04.170 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.
3.04.180 Repeals. Ordinance No. 772 is hereby
repealed; provided, however, that said ordinance shall remain
applicable for the purposes of the administration of said
ordinance and the 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, effecting credits, the
disposition of monies collected, and for the commencement
or continuance of any action or proceeding under said
ordinance.
SECTION 2. This ordinance shall be published once in
the official newspaper of the City, and the same shall be
effective 30 days after the date of its adoption.
This ordinance was introduced at a regular meeting of
the City Council of the City of Newport Beach held on the 24th
day of September , 1973, and was adopted on the
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9th day of October 1973, by the following vote,
to wit:
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AYES, COUNCILMEN: McInnis, Rogers, Croul,
Dostal, Kw1a, Ryckoff, Store
NOES, COUNCILMEN:
ABSENT COUNCILMEN:
ATTEST:
C ty Clerk
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CERTIFIED AS THE OR!G!NAL AND
CERTIFIED AS TO PUBLICATION
OCT 1 2 1973
PATE -------- -- .......... .....
CITY CLERK OF THE C OF N PORT BHACPi
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9/18/73