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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, -1- 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 -2- 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. -5- (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 -7- 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 -8- 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 -9- 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 -10 - 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. -11- • 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 -12 - 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 -13 \