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Ordinance - 458n ORDINANCE FO.458 • • AN ORDINANCE OF THE CITY OF WEST COVINA 9 CALIFORNIA I II:POSING A CITY SALES AND USE TA--',;; PROVIDING r OR THE PEP.FOR%ANCE BY THE STATE BOARD OF EQUALIZATION OF ALL FUNCTIONS INCIDENT TO THE ADi:INISTRA— TIONo OPERATION AND COLLECTION OF THE SALES AND USE, TALC HEREBY IEPOSED; SUSPENTiING THE PROVISIONS OF ORDINANCES NOS.369 AND 422 DURING SUC4 TIaE AS THIS ORDINANCE IS OPERATIVE; AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF. THE CITY COUNCIL OF THE CITY OF 1irEST COVINA DOS ORDAIN AS FOLLOWS: SECTION 1, SNORT TITLE. This ordinance shall be known as the Unl_'orrm' Toccal Sales and Use Tax C>rdinance of the City of West Covina SECTION 2. PURPOSE. The City Council of the City of West Covina —hereby "3eclares that this ordinance is adopted to achieve the following, among other, purposes, and directs that the provi- sions 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 in Part 1.5 of Division 2 of the Revenue and Taxation Code of the State of Calif- ornia; (b) To adopt a sales and use tax ordinance which incorpor- ates provisions identical to those of the Sales and -Use Tax Law of the State of California insofar as those provisions are not incon- sistent with the requirements and limitations contained in Part 1.5 of Division 2 of the said Revenue and Taxation Code; (c) To adopt a sales and use tax ordinance which imposes a one percent (1%) 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 practical to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equaliza- tion 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 consis- tent with the provisions of Part 1.5 of Division 2 of the said Revenue 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; (e) To adopt a sales and use tax ordinance which can be administered in a manner that will exclude the receipts of parti- cular sales from the measure of the sales tax imposed by this City which have been included in the measure of the sales tax imposed by any other city and county, county other than the county in which this city is located, or city in this State, and avoid imposing a use tax on the storage, use or other consumption of tangible personal property in this City when the gross receipts from the -1- sale of, or the use of, that property has been subject to a sales or use tax by any other city anJ county, county other than the county in which this city is located, or city in this State, pur- suant to a sales and use tax ordinance enacted under the provisions of Part 1.5 of Division 2 of the said Revenue and Taxation Code. SECTION 3. OPERATIVE DATE. CONTRACT WITH STATE. This ordinance shall become operative on April 1, 1954 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 said State Board of Equalization, as above set forth, prior to April 1, 1954 this ordinance shall not be operative until the first day of the first calendar quarter following the execution of such a contract by the City and by the State Board of Equalization, provided further that this ordinance shall not become operative prior to the operative date of the Uniform Local Sales and .Use Tax Ordinance of the County of Los Angeles. SECTION 4. SALES TAX. (a) (1) For the privilege of selling tangible personal prop- erty at retail a tax is hereby imposed upon all retailers in the city at the rate of one percent (1%) of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the City of West Covina on and after the operative date of this ordinance. (2) For the purposes of this ordinance, all retail sales shall be presumed to have been 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 destina- tion or to a common carrier for delivery to an out-of-state destination. Delivery charges shall be included in the gross receipts by which the tax is measured, regardless of the place to which delivery is made, when such charges are included in the measure of the sales or use tax imposed by the State of California. In the event a retailer has no permanent place of business in the • State of California, or has more than one place of business, the place or places at which retail sales are consummated shall be as determined under rules and regulations prescribed and adopted by the Board of Equalization. (b) (1) Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the said Revenue and Taxation Code, all of the pro- visions of part 1 of -Division 2 of said Code, as amended and in force and effect on April 1, 1956, applicable to sales taxes are hereby adopted and made a part of this section as though fully set forth herein. (2) Wherever, and to theF.extent that, in Part 1 of Divi- sion 2 of the said Pevenue and Taxation Code tV the State of California is named or referred to as the taxing agency, the City of West Covina shall be substituted therefor, Nothing in this -2- 0 subdivision shall be deemed to require the substitution of the narYe of the City of pest Covina for the word "State'? when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equali- zation, or the name of the State Treasury, or of the Constitution of the State of California; nor shall the name of the City be substituted for that of the State in any section when the result of that substitution would require action to be taken by or againt 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; and neither shall the substitution be deemed to have been made in those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to provide an el:emption from this tax with respect to certain gross receipts which would not otherwise be exeript from this tax while those gross receipts remain subject to tax by the State under the provisions of Part 1 of Division 2 of the said Revenue and Taxation Code; nor to impose this tax with respect to certain gross receipts which would not be subject to tax by the State under the said provisions of that Code; and, in'addi- tion, the name of the City shall not be substituted for that of the State in Sections 6701, 6702 (eXcept in the last sentence thereof), 6711, 6715, 67379 6797 and 6828 of the said Revenue and Taxation Code as adopted. (3) If a seller's permit has been issued to a retailer under Section 6068 of the said Revenue and Taxation Code, an additional seller's permit shall not be required by reason of this section. (4) There shall be excluded from the gross receipts by which the tax is neasuredr M The amount of any sales or use tax imposed by the State of California upon a retailer or consumer. (ii) Receipts from the sale of tangible personal • property upon which a sales or use tax has become due by reason of the same transaction to any other city and county, county other than the county in which this city is located, or city in this State under a sales or use tax ordinance enacted by that city and county, county other than the county in which this city is located, or city in this State in accordance with Part 1.5*of Division 2 of the said Revenue and Taxation Code. (iii),21cceipts from sales to operators of, common carrier and waterborne vessels of property to be used or consurzed in the operation of such common carriers or waterborne vessels principally outside of this City. -3- SECTION 5, USE, TAX. (a) An excise tax is hereby imposed on the stogage, use or other consumption in the City of -Nest Covina of tangible personal property purchased from any retailer on or after the operative date of this ordinance, for storage, use or other consumption in the city at the rate of one percent (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. (b) (1) Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of ,part 1.5 of Division 2 of the said revenue and Tas,-ation Code, all of the provisions of • Part 1 of Division 2 of said Code, as amended and in force and effect on April 1, 1956, applicable to use ta�:es are hereby adopted and made a part of this section as though fully set forth herein. (2) 14herevor, and to the extent that, in Part 1 of Division 2 of the said Revenue and Taxation Code the State of Calif- ornia is named or referred to as the taping agency, the City of West Covina shall be substituted therefor. Nothing in this subdi- vision shall be deemed to require the substitution of the name of the City of ;lest Covina for the word "State" when that word is used as part of the title of the State Controller, the State Treasurer, the State Boar" of Control, the State Doard of f3qualization, or the name of the State Treasury, or of the Constitution of the State of Califo:rn,ia; nor shall the name of the City be substituted for that of the State in any section 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 Equali- zation, in performing the f unctions incident to the administration or operation of this ordinance, and neither shall the substitution be deemed. to have been .Made in those sections, including but not necessarily limited to, sections referring to the exterior bounda- ries of the State of California, where the result of the substi- tution would be to provide an exemption fron this tax with respect to certain storage, use or other consumption of tangible personal property which would not otherwise be exempt fron, this tax while . such storage, use or other consumption remains subject to tax by the State under the provisions of Part 1 of Division 2 of the said Revenue and Taxation Code, or to iripose this ta« with respect to certain 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; and in addition, the narie of the City shall not be substituted for that of the State in Sections 67019 6702 (except in the last sentence thereof), 6711, 67159 67379 6797 and 6828 of the said Revenue and Taxation Code as adopted. (3) There shall be exempt from the tax due under this section: (i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer. MIM (ii) The storage, use or other consumption of tangible personal property, 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 ordinance enacted in accordance with Fart 1.5 of Division 2 of the said Revenue and Taxation Code by any other city and county, county other than the county in which this city is located, or city in this State. (iii) The storage or use of tangible personal property in the transportation or transmission of persons, property or cor.,imunications, or in the generation, trans- mission or distribution of electricity or in the manu- facture, 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. (iv) The use or consumption of property pur- chased by operat:ors of coa;uion carrier and waterborne vessels to be used or consumed in the operation of such coruion carriers or waterborne vessels principally outside the City. SECTION 6. AHM01.1NTS. All amendments of the said Revenue and Taxation ode enacted subsequent to the effective date of this ordinance which relate to the sales and use tax and which are not inconsistent with Part 1.5 of Division 2 of the said Revenue and Taxation Code shall automatically become a part of this ordinance. SECTION 7, ENJOINING COLLECTION FORBIDDEN. No injunction or writ of Elan ate 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 tal; required to b,e collected. SECTION 8. MKISTING SALES AND USE TAB' ORDINANCES SUSPENDED. At the tine this ordinance goes into operation, the provisions of • Ordinances Nos.369 and 422 shall be suspended and shall not again be of any force or effect until and unless for any reason the State Board of Equalization ceases to perform the functions incident to the administration and operation of the sales and use tax hereby imposed; provided, however, that if for any reason it is determined that the City of V1 Covina is without power to adopt this ordi- nance, or that the State Board of Equalization is without power to perform the functions incident to the administration and operation of the taxes imposed by this ordinance, the provisions of Ordinances Nos.369 and 422 shall not be deeded to have been suspended, but shall be deemed to have been in full force and effect at the rate of one percent (1%) continuously from and after April 1, 1956. Upon the ceasing of the State Board of Equalization to perform the functions incident to the administration and operation of the taxes imposed by this ordinance, the provisions of Ordinances Nos.369 -5 - V I and 422 shall again be in full force and effect at the rate of one percent (1%). Nothing in this ordinance shall be construed as relieving any person of the obligation to pay to the City of §Test Covina any sales or use ta; accrued and owing by reason of the provisions of Grdinances T4os.359 and 49Z in force and effect prior to and including 1r,�arch 31, 1956. SECTION 9. P.+IALTIES. Any person violating any of the pro- visions o is ordinance shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than $500.00 or by imprison ien't for a period of not more than six (6) months in the City Jail, or by both such fine and imprison- ment. SECTION 10. SEV^P.ABILITY. If any section, subsection,sentence, clause, phrase or portion of this ordinance, including but not limited to any exei;iption, is for any reason held to be invalid or unconstitutional by the decision of any court of competent juris- diction, such decision shall not affect the validity of the re- maining portions of this ordinance. The Council of the City of ?Test 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, sentences, clauses, phrases or portions be declared invalid or unconstitutional. SECTION 11. EFFECTIVE, DATE. The City Clerk shall certify to the passage—`o -t-His Ordinance and shall cause the same to be 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 passageN, and this Ordinance shall become effective April 1, 1956. A T T E S 2 -, "ay, r o he y c �Tes Covina City er I HEREBY CERTIFY that the foregoing ,Crdinance was adopted at a regular meeting of the City Council of the City of Nest Covina,, held on.the 27th day of rebruary,1956, by the affirmative vote of at least three Councilzmen, to wit: AYES: Council�.en DAMES W. KAY BERT C. VAN HORN J. CAL SPERLINE JAY D. BROWN NOES: JOE HURST, MAYOR City Clerk of e City o -Uest Covina ABSENT: I V : tr e, -6-