Ordinance - 369ORDINANCE NO.369
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA, IMPOSING A LICENSE TAX -FOR THE PRIVILEGE OF SELLING
TANGIBLE PERSONAL PROPERTY AT RETAIL, PROVIDING FOR PERMITS TO
RETAILERS, PROVIDING FOR THE COLLECTING AND PAYING OF SUCH TAX,
AND PRESCRIBING PENALTIES FOR VIOLATIONS,OF THE PROVISIONS HEREOF.
THE CITY COUNCIL OF THE CITY OF WEST COVINA DOES ORDAIN AS FOLLOWS:
SECTION 1. IMPOSITION AND RATE OF TAX. For the privilege
of selling tangible personal property at retail a. tax is hereby
imposed'upon all retailers at the rate of 1% of the gross receipts
of any retailer from the sale of all tangible personal property
sold at retail in the City of West Covina on or after July 1, 1955.
The license tax imposed.by the provisions of this Ordinance is in
addition to any and all other taxes imposed by any other Ordinance
of the City of West Covina.
SECTION 2,,- BURDEN OF PROOF UPON PERMITTEE USER OR CONSUMER.
For the purpose of the proper,..administration of this Ordinance, and
to prevent evasion of the sales tax it shall be presumed that all
gross receipts are subject to the tax until the contrary is established
by the permittee.
SECTION 3,. TAX LEVIED IN SAME MANNER AS STATE TAX. The
tax hereby levied, except as otherwise herein provided, is levied.in
the same manner, to the same extent and under the same conditions
as sales taxes are levied pursuant to Part 1 of Division 2 of the Calif-
ornia Revenue and Taxation Code, known as the "Sales and Use Tax Law"
as amended and in force and effect on July 1, 1955.
SECTION 4. ADOPTION OF STATE SALES TAX LAW BY REFERENCE.
EXCEPTIONS. All of the provisions of the "Sales and Use Tax Law",
as amended and in force and effect on July 1, 1955, except the
provisions thereof pertaining solely to the "Use Tax" and Sections
60519 6052, 60539 6066, 60679 6068, 60699 60709 60719 6451, 7052,
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705697101, 710297151, 7152,7153, applicable to sales of property
at retail, are hereby adopted and made a part of this ordinance as
though fully set forth herein, and all provisions of any other
article or chapter in conflict1herewith are inapplicable to this
ordinance and the tax hereby imposed; provided, however, the term
"gross receipts'.', as used herein, does not include the amount -of
any tax imposed by the State of California upon or with respect to
retail sales whether imposed upon the retailer or upon the consumer.
• All of the provisions of the IfSales and Use . Tax►1 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 "West Covina. All other provisions
of the "Sales and Use Tax Law" here'adopted, providing for the per-
formance of official action on the part of the State Board of Equali-
zation, shall be performed by the City Treasurer,
The City of West Covina 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 for West Covina shall be deemed substituted
for the Attorney General whenever the Attorney General is referred
to in -said "Sales and Use Tax Law".
The City Treasurer shall be deemed substituted for the State
Controller whenever the State Controller or State Board of Control
are referred to in said IrSales and Use Tax Law«.
The County of Los Angeles shall be deemed substituted for
the County of Sacramento whenever the County of Sacramento is
referred to in said "Sales and Use Tax Lawl'.
SECTION 5. EXEMPTIONS. (a) In addition to those exemptions
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contained in Part I of Divj�.s,ion 2 of.the Revenue and Taxation Code
of the State of California, included in this ordinance by reference,
there shall be excluded from the computation of the tax, gross
receipts from:
(i) Sales made to or by the State of California or any
agency department, political subdivision, district or municipal cor-
poration thereof;
• (ii) Sales of property to be consumed in, or incorporated
into the erection, construction, repair or alteration of either public
works or buildings belonging to or being constructed by or on behalf
of, or for the buildings belonging to or being constructed by or on
behalf of, or for the use of the United States Government, the State
of California or any agency department, political subdivision, district
or public or municipal corporation of the State;
(iii) Sales made pursuant to contract actually executed in
good faith prior to the effective date of this ordinance;
(iv) "Sales of meals, food and drinks sold or served on common
carriers operating into, through or out of the city from or to points
outside of this city.
•
(b)
No tax shall be due
hereunder if a,
sales tax, purchase
tax, use tax
or purcha-se and use
tax imposed by
any other City of the
State of California has been paid on the same transaction.
(c) The sales tax shall not apply if, pursuant to the contract
of -sale, the seller is required t6deliver the property outside the
City, and does in fact deliver the property to a point outside the
City, by means of (1) facilities operated by the retailer, or (2)
delivery by the retailer to a carrier for shipment to a consignee at
such point, or (3) delivery by the retailer to a customs broker or
Isle
forwarding agent for shipment outside the City, unless such shipment
is made for the purpose of evading or avoiding payment of the sales
tax provided for
in
this
ordinance.
SECTION
6.
'^(a)
The exemption from sales tax set forth in
SECTION 5 of this ordinance shall not be applicable unless the seller
secures from the purchaser the signed certificate described in the
next paragraph below; provided, however, that where the exemption is
claimed because of an alleged delivery of the property outside the
City pursuant to the contract of sale, the seller may obtain, in lieu
thereof, a copy of the purchase order or other document reflecting
the transaction, and describing the property sold, and containing a
printed, written or stamped statement, approved as to form by the
City Treasurer, to the effect that the property was, pursuant to the
contract of sale, actually delivered to the buyer outside the City
and signed by the purchaser. This' certificate shall be held by the
Seller or delivered to the City Treasurer as the City Treasurer may
direct.
(b) The certificate shall be in the following form:
NAME OF SELLER
• ADDRESS OF SELLER
CITY
WEST COVINA SALES TAX EXEMPTION CERTIFICATE REQUIRED UNDER ORDINANCE
NO.369 OF WEST COVINA.
Please sign and return.
I hereby certify that I am engaged in the business of.......
.........that the tangible personal property described herein which
I shall purchase from.... not subject to the West
Covina Sales Tax by reason of the exemptions stated in Section 5
Subsection ----- thereof, for the following reasons:
Description of property purchased:
I understand (1) that the seller must pay to the City of
West Covina the tax on this sale (or sales) unless I sign this
certificate, and (2) that a knowingly false statement made by me
on this certificate will subject me to a $500.00 fine and/or 6
0 months in jail, according to Ordinance No.369 of the City -of West
Covina.
Purchaser ..............................
Address., ............:.................
SECTION 7. ADOPTION OF RULES AND REGULATIONS BY REFERENCE.
INTERPRETATIONS. The rules and regulations of the State Board of
Equaliza.;tion as amended and in force and effect July 1, 1955, pertain-
ing to the interpretation, administration and enforcement of the
"Sales and Use Tax Law", insofar as applicable, except Rule 55 (Section
2015, Title 18, California Administrative Code, Sales & Use Tax) shall
apply in the interpretation of this ordinance until specifically
abandoned by the rules and regulations adopted by the City Council of
the City of West Covina pursuant to this ordinance. The word "City"
shall be deemed substituted for the word "State" whenever the word
"State" :appears in said rules and regulations.
In lieu of Rule No.55, specifically excepted above, the follow-
ing interpretations shall -apply in the administration of this ordinance.
(A) The sales tax does not apply to sales of property which
is:. (i) Imported into this city from a foreign country and sold
by the importer in the original package in which imported.
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(ii) Sold to foreign purchasers for ship, airplane, or other
conveyance furnished by the purchaser for the purpose of carrying
the property abroad and actually carried to a foreign destination,
title and control of the property passing to the foreign purchaser
upon delivery, and no portion of ,the property being used or consumed
in the United States. Copies of U.S.Customs Shipperst export declara-
tions filed with the Collector of Customs must be obtained and re-
tained by retailers to support deductions taken under this paragraph.
The tax applies to the transaction if the property is diverted in
transit or if for any reason not actually delivered outside the City
pursuant to the contract of sale or not shipped abroad by a foreign
purchaser, -regardless of documentary evidence held by the retailer
of delivery of the property to a carrier for shipment outside the
City, or to a foreign purchaser for shipment abroad.
(iii) Mailed by the seller, pursuant to the contract of sale,
to persons in the armed forces at points outside continental United
States notwithstanding the property is addressed in care of the Post-
master and forwarded by him to the addressee. When mail is addressed
to Army Post Offices (A/P/O's) in care of the Postmaster, or to naval
• forces addressed in care of the Postmaster, it will be presumed that
it is forwarded outside California.. The seller must keep records
showing the names and addresses as they appear on the mailed matter
and should keep evidence that the mailing was done by him.
(iv) Shipped to a point outside this City pursuant to the
contract of sale when the property is marked for export and delivered
by the retailer to the "contracting officer," "officer in charge",
"port quartermaster", or other officer of the United States for
transportation and delivery to the purchaser at such a point.
(B) The sales tax does not apply to sales of airplanes,
and parts and equipment for airplanes, transported to a point outside
this City pursuant to the contract of sale when such property is
delivered to the United States Army Corps or any other agency of
instrumentality of the United States for transportation and delivery
to the purchaser or someone designed by him at that point.
•
(C)
The sales
tax does not apply
(either
in interstate or
intrastate
commerce) to
sales of property
shipped
from a point outside
the City of West Covina to a purchaser inside the City of West Covina,
for delivery to the purchaser, if none of the elements of sale, other
than such delivery, takes place in the City of West Covina.
The sales tax does apply (either in interstate or intrastate
commerce). to sales of property shipped from a point outside of the
City of West Covina to a purchaser inside the City of West Covina,
or to the retailers agent in the City of West Covina, for delivery
to the purchaser where any element of the sale, in addition to such
delivery, takes place in the City of West Covina.
"Element of Sale" is hereby defined to include solicitation
of an order, the acceptance of an order, the giving of an order,
whether such order is given in person, by telephone or by mail, or
the payment of the purchase price.
SECTION 8. VERBATIM EXCERPTS SHALL NOT EXCLUDE BALANCE.
The inclusion of any clause, portion or part of the "State Sales and
Use Tax La.w119 Part I, Division 2 of the Revenue and Taxation Code
of the State of California, or the rules and regulations of the State
Board of Equalization, verbatim 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" or rules and regulations that are made a part
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hereof by reference only.
SECTION 9. APPLICATION FOR PERMIT. Every person desiring
to engage in or conduct business as a seller within the City of West
Covina shall file with the City Treasurer an application for a permit
for each,place of business from which taxable sales will be made.
Every application for a permit shall be made upon a form prescribed
by the City Treasurer and shall set forth the name under which the
• applicant transacts or intends to transact business, the location of
his place or places of business, and such other information as the
City Treasurer may require. The application shall be signed by the
owner, if a natural person; in the case of a corporation, by an
executive officer or some person specifically authorized by the cor-
i
porationjo sign the application, to which shall be attached the
written evidence of his authority.
Every retailer selling tangible personal property for use or
other consumption in this city and which retailer maintains a place
of business in this city or acts through agents located in this city,
and which retailer is not otherwise registered under the provisions
s
of this ordinance shall register with the City Treasurer and give the
name and address of such agent or agents and offices or other places
of business in the City.
SECTION 10. ISSUANCE AND DISPLAY OF PERMIT. After compliance
with Section 9 of this ordinance by the applicant, the City Treasurer
shall grant and issue to each applicant a separate permit for each
place of business from which taxable sales will be made. A. permit is
not assignable and is valid only for the person in whose name it is
issued and for the transaction of business at the place designated
therein; provided, however, a change of location may be endorsed upon
the permit by the City Treasurer. The permit shall at all times
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be conspicuously displayed at the place for which issued.
SECTION 11. REVOCATION OF PERMIT. Whenever any person
fails to comply with any of the provisions of this ordinance or any
rule or regulation adopted pursuant hereto, the City Council of the
City of West Covina, upon hearing, after giving the person ten days'
notice in writing specifying the time and place of hearing and re-
quiring him to show cause why his permit or permits should not be
revoked, may revoke or suspend any one or more of the permits held
by the person. The notice may be served personally or by mail in
the manner prescribed for the service of notice of a deficiency deter-
mination under the "Sales and Use Tax Law". The City Treasurer shall
not issue a new permit after the revocation of a permit unless the
City Council of the City of West Covina is satisfied that the former
holder of a permit will comply with the provisions of this ordinance
and the rules and regulations adopted pursuant hereto and directs
the City Treasurer to issue such permit.
SECTION 12. UNLAWFUL ACTS. A. person who engages in business
as a seller in the City of West Covina without a permit or permits,
or after a permit has been suspended or revoked and before the renewal
• or issuance of a permit, and each officer of any corporation which
so engages in business, is guilty of a misdemeanor.
SECTION 31. DUE DATE. The taxes imposed by this ordinance
are due and payable to the City Treasurer on or before the last day
of the month'next succeeding each quarterly period, the first quarterly
payment to be due and payable under this ordinance on the 31st day
of October, 1955. The City Treasurer may require returns and payment
of the amount of taxes for quarterly period other than calendar
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quarters depending upon the principal place of or the nature of
the business of the seller or retailer or may require returns and
payment of the amount of taxes for other than quarterly periods.
SECTION 14. REIMBURSEMENT. The tax hereby imposed shall
be collected by the retailer from the consumer insofar as it can
be done.
• SECTION 15. UNLAWFUL ADVERTISING. It is unlawful for any
retailer to advertise or hold out or state to the public or to any
customer, directly or indirectly, that the tax or any part thereof
will be assumed or absorbed by the retailer or that it will not be
added to the selling price of the property sold or that, if added,
it or any part thereof will be refunded. Any person violating any
provision of this section is guilty of a misdemeanor.
SECTION 16. SUIT FOR TAX. All taxes hereby levied shall
be payable to the City Treasurer and any civil suit for the collection
thereof may be filed in any court of competent jurisdiction in the
State of California, and the City Attorney of said City shall prosecute
the action.
SECTION 17. RESALE CERTIFICATE. The City Treasurer may at
• his option accept a. State of California Resale Certificate as evi-
dence that any sale is not a sale at retail, or he may in his dis-
cretion require an affidavit from the seller setting forth such
information respecting such sale as he deem.e necessary to determine
the nature of such sale.
SECTION 18. EXTENSION OF TIME, WAIVER OR COAiPROMISE. The
City Treasurer shall have power, for good cause shown, to extend for
a period of not to exceed 30 days the time for making any return or
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paying any amount required to be paid under this ordinance, when
requested so to do in writing, before the same becomes delinquent.
The City Treasurer may with the written approval of the City Attorney
waive or compromise any penalty or interest that would otherwise
accrue under the provisions of this ordinance. The City Treasurer
shall make and transmit to the City Council quarterly, a. detailed
• report of any sums so waived or compromised with the reasons therefor.
SECTION 19. DISPOSITION OF PROCEEDS. All monies collected
under and pursuant to the provisions of this ordinance shall be
deposited and paid into the General Fund of the City of West Covina.
SECTION 20. DIVULGING OF INFORMATION FORBIDDEN. It is
unlawful for any officer or employee of the City of West Covina
having an administrative duty under this ordinance to 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 income, profits, losses, expendi-
tures, or any particular thereof set forth or disclosed in any return,
or to permit
any return or
copy
thereof
to
be
seen or examined by
any person.
However, the
City
Council
may,
by
resolution, 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. S.u,cces;sors, receivers, trustees, executors,
administrators, assignees, and guarantors, if directly interested,
may be given information as to the items included in the measure
and amount of any unpaid tax or amounts of tax required to be collected,
interest and penalties.
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•
SECTION 21. PENALTIES. Any person required to make,render,
sign or verify any report, form, return or statement under the pro-
visions of this ordinance, who makes any false or fraudulent report,
return, form or statement with intent to defeat or evade the deter-
mination of an amount due and required to be paid hereunder, is
guilty of a misdeameanor, 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 22. SAME. Any person, firm or corporation violating
any of the terms of this ordinance shall be deemed guilty of a mis-
demeanor, 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 23. SEVERABILITY. If any section, subsection,
sentence, clause, phrase, or portion of this ordinance is for any
reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the
validity of the remaining .portions of this ordinance. The Council
of the City of Nest Covina hereby declares that it would have adopted
this ordinance and each section, subsection, sentence, clause, phrase
or portion thereof, irrespective of the fact that any one or more
sections, subsections, clauses, phrases or portions be declared
invalid or unconstitutional.
SECTION 24. EFFECTIVE DATE. The City Clerk shall certify
to the passage of this ordinance and shall cause the same to be
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r:
published once in the West Covina. Tribune, a, newspaper of general
circulation, printed and published within this City, within fifteen
(15) days after the date of its passage, and this ordinance shall
become effective July 1, 1955.
SIGNED, APPROVED AND ADOPTED this 25th day of April 1955,
tyor'' o the- i y of We Covi a
ATTES :
City Clerk
I HEREBY CERTIFY that the foregoing Ordinance was adopted
at a regular meeting of the City Council of the City of West Covina,
held on the. 25th day of April
19559 by the affirmative
vote of at least three Councilmen, to wit:
f
AYES: Councilmen DAMES W. KAY BERT C. VAN HORN J. CAL SPERLINE JAY D. BROWN
NOES: NO We JOE Ht1RST, MAYOR
ABSENT: VO
City Cler k of the C1ty of Wiest Covina
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