1962/09/24 City Council Resolution 18I
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OTT. MAXWELL
& HOOD
7RNEYS AT LAW
MEDOCINO AVE.
A ROSA. CALIF.
ERTY 2 -1962
RESOLUTION NO.
RESOLUTION APPROVING STATE ADMINISTRATION
OF LOCAL SALES AND USE TAXES
RESOLVED BY THE COUNSEL OF THE CITY�OF ROHNERT PARK
THAT THAT CERTAIN AGREEMENT ENTITLED "AGREEMENT FOR STATE AomIN-
ISTRATION OF LOCAL SALES AND USE TAXES" BETWEEN THE-CITY OF
ROHNERT PARK AND THE STATE BOARD OF EQUALIZATION BE AND THE SAME
IS HEREBY APPROVED AND THE MAYOR IS AUTHORIZED TO EXECUTE THE
SAID AGREEMENT FOR AND ON BEHALF OF THE CITY OF ROHNERT PARK.
DULY AND REGULARLY ADOPTED THIS 24% DAY of SEPTEMBER,
1962. f
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AYES.
NOES. -
ABSENT :;
ATTEST:
CITY CLERK
APPROVED: `—�' �+ 0``
MAYOR
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ORDINANCE NO.
AN ORDINANCE IMPOSING A SALES AND USE TAX TO BE
ADMINISTERED BY THE STATE BOARD OF EQUALIZATION
AND PROVIDING PENALTIES FOR VIOLATIONS
The City Council of the City of
does ordain as follows:
Section 1. SHORT TITLE. This ordinance shall be known as the Uniform Local Sales
and Use Tax Ordinance.
be
Section 2. RATE. The rate of sales tax and use tax imposed by this ordinance shall
Section 3. OPERATIVE DATE. "Operative date" means the first day of the first calen-
dar quarter following the adoption of this ordinance.
Section 4. 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 in-
terpreted in order to accomplish those purposes:
(a) To adopt a sales and use tax ordinance which complies with the re-
quirements and limitations contained in Part 1.5 of Division 2 of the Revenue
and Taxation Code;
(b) To adopts sales and usetax 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 ad-
ministrative procedures followed by the State Board of Equalization in adminis-
tering 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
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Part 1.5 of Division 2 of the 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.
Section 5. CONTRACT WITH STATE. Prior to the operative date this city shall con-
tract 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 first calendar
quarter following the execution of such a contract rather than the first day of the first calendar
quarter following the adoption of this ordinance.
Section 6. SALES TAX. For the privilege of sellingtongible personal property at retail
a tax is hereby imposed upon all retailers in the city at the rate stated in Section 2 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.
Section 7. PLACE OF SALE. For the purposes of this ordinance, 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 de-
livery 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.
Section 8. 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 stated in Section
2 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.
Section 9. 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
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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.
Section 10. 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 name of this City shall be substituted therefor.
The substitution, 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 the State of California, where the result of the
substitution 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 Sections6701, 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 definition of that phrase in Section 6203.
Section 11. PERMIT NOT REQUIRED. If a seller's permit has been issued to a retailer
under Section 6068 of the Revenue and Taxation Code, an additional seller's permit shall not
be required by this ordinance.
Section 12. EXCLUSIONS. There shall be excluded from the measure of tax:
(a) The amount of any sales or use tax imposed by the State of Cali-
fornia upon a retailer or consumer.
(b) The storage, use or other consumption of tangible personal property,
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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 con-
sumption of property purchased by, operators of common carrier 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 i ntrastate, i nterstate or forei gn commerce by public utilities
which are regulated bythePublic Utilities Commission of the State of California.
Section 13. AMENDMENTS. All subsequent amendments of the Revenue and
Taxation Code which relateto the sales and usetax and which are notinconsistent with Partl.5
of Division 2 of the Revenue and Taxation Code shall automatically become a part of this
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Section 14. ENJOINING COLLECTION FORBIDDEN. No injunction 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 en-
join 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.
Section 15. 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 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 16. SEVERABILITY. If any provision of this ordinance or the application there-
of to any person or circumstance is held invalid,the remainder of the ordinance and the applica-
tion of such provision to other persons or circumstances shall not be affected thereby.
Section 17. EFFECTIVE DATE. This ordinance relates to taxes for the usual and
current expenses of the city and shall take effect immediately.
City of i -
AGREEMENT FOR STATE ADMIN:IlSTRATION OF LOCAL SALES AND USE TAXES
To carry out Part 1.5 of Division 2 of the Revenue and Taxation Code and the sales and
use tax ordinance of the City hereinabove designated, hereinafter called the City, copy of which
ordinance is attached hereto, the City and the State Board of Equalization, hereinafter called
the Board, do agree as follows-
ARTICLE l
DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in this
Agreement they shall be interpreted to mean the following:
1. "Local Taxes" shall mean the sales and use taxes, penalties, and interest imposed
by the City under an ordinance which complies with Part 1.5, Division 2, of the Revenue and
Taxation Code.
2. "Conforming Taxing Jurisdiction" shall mean any county, city, or city and county of
this State which has adopted a sales and use tax ordinance of the kind described in Part 1.5 of
Division 2 of the Revenue and Taxation Code and which has entered into a contract with the
State Board of Equalization to perform all functions incident to the administration and operation
of the ordinance.
3. "City Ordinance" shall mean the Uniform City Sales and Use Tax Ordinance at-
tached hereto, as amended from time to time.
AUTiCLE H
ADMINISTRATION AND COLLECTION OF LOCAL TAXES
A. Administration. The Board and the City agree that the Board shall perform ex-
clusively all functions incident to the administration and operation of the City ordinance.
B. Other applicable laws. The City agrees that all provisions of law applicable to
the administration and operation of the State Sales and Use Tax Law shall be applicable to the
administration and operation of the City ordinance and that money collected pursuant to the City
ordinance may be deposited in the State Treasury to the credit of the Retail Sales Tax Fund and
may be drawn from that Fund for the purpose of making refunds, for the purpose of compensating
and reimbursing the Board pursuant to Article IV of this Agreement and for the purpose of trans-
mitting to the City the amount to which the City is entitled.
C. Transmittal of money. Except as otherwise provided herein, all local taxes collected
under the provisions of the City ordinance shall be transmitted to the City periodically as prompt-
ly as feasible. A statement shall be furnished indicating the amount withheld pursuant to Article
IV of this Agreement.
D. Rules. The Board shall prescribe and adopt such rules and regulations as in its
judgment are necessary or desirable for the administration and operation of the City ordinance
and the distribution of the local taxes collected thereunder.
5-527 REV. 2 (4 -59)
E. Preference. unless the payor instructs otherwise and except as otherwise provided
in this Agreement, the Board shall give no preference in applying money received for sales and
use taxes owed by a taxpayer but shall apply all monies collected to the satisfaction of the
claims of the State and the claims of the City as their interests appear.
F. Security. The Board agrees that any security which it hereafter requires to be fur-
nished under the State Sales and Use Tax Law will be upon such terms that it also will be
available for the payment of the claims of the City for local taxes owing to it as its interest
appears. The Board shall not be required to change the terms of any security now held by it and
the City shall not participate in any security now held by the Board.
G. Names of sellers. The Board agrees to furnish the names, addresses, account num-
bers, and the business classification codes of all sellers holding sellers' permits within the
City.
11. Records of the Board. Subject to executive approval under Section 7056 of the Reve-
nue and Taxation Code, the Board agrees to permit authorized personnel of 'the City to examine
the records and procedures of the Board concerning taxpayers subject to the City ordinance.
I. City tax rate. The City agrees that any change in the rate of its conforming local
sales and use tax will be made effective at the beginning of a calendar quarter and that it will
give the Board at least two months' notice thereof and that it will also give notice to the Board
of Supervisors of the County in which the City lies.
J. Annexation. The City agrees that the Board shall not be required to give effect to an
annexation, for the purpose of collecting and distributing city sales and use, taxes, earlier than
the first day of the calendar quarter which commences not less than two months after notice to
the Board. The notice shall include the address of the property nearest to the extended city
boundary on every street crossing that boundary.
ARTICLE III
ALLOCATION OF TAX
A. Deficiency determination. All local taxes collected as a result of determinations or
billings made by the Board, and all amounts refunded or credited may be distributed or charged
to therespective conforming taxing jurisdictions in the same ratio as the taxpayer's self- declared
local tax for the period for which the determination, billing, refund, or credit applies.
B. Allocation. When the local tax is collected from or refunded or credited to the
following:
(1) Retailers having traveling sellers' permits or certificates of authority to collect
use tax issued by the Board;
(2) Persons regarded by the Board as retailers pursuant to Section 6015 of the Reve-
nue and Taxation Code;
(3) Persons for whom no continuing account number was active at the date of pay-
ment; or
(4) Other retailers or purchasers having no permanent place of business within the
State as determined by the Board;
S-527 REV. 2 (4-89) - 2-
or when the local tax is collected by way of deduction from refunds of motor vehicle fuel license
taxes, the Board may distribute or charge such local tax to all conforming taxing jurisdictions
in the county in which the sale or use occurred using the ratios reflected by the distribution of
taxes collected from all other taxpayers in that county. To the extent that this cannot be done
in a manner consistent with the economic and efficient performance of the duties of the Board
under the Revenue and Taxation Code and the provisions of this Agreement, the Board may dis-
tribute or charge such local tax to all conforming taxing jurisdictions of this State using the
ratios reflected by the distribution of taxes collected from all other taxpayers in the State.
C. Motor 'Vehicles. For the purposes of the foregoing allocation with respect to vehi-
cles required to be registered under the Vehicle Code, the address of the registered owner
appearing upon the application for registration may be used by the Board in determinism the
county of use.
ARTICLE 1V
COMPENSATION
A. Numerator. The cost of administering Parts 1 and 1.5 of Division 2 of the Revenue
and Taxation Code and the conforming local sales and use tax ordinances for each fiscal year
shall be determined in the manner herein set forth. Such cost shall include costs incurred by
the Board and by other State agencies, including but not limited to the Attorney General, the
State Controller, the State Personnel Board, the State Treasurer, and the Department of Finance.
Such cost is referred to as "the administrative cost ".
B. Denominator. The amounts transferred during each fiscal year from the Retail Sales
Tax Fund to conforming taxing jurisdictions and to the General Fund of the State, pursuant to
Section 7102 of the Revenue and Taxation Code, together with amounts withheld pursuant to
this Article of this Agreement, shall be determined. Such amounts are referred to as "the
tax distributed ".
C. Ratio. The administrative cost for the fiscal year shall be compared to the tax dis-
tributed during the fiscal year and a percentage computed. Such percentage shall be rounded off
to the nearest one hundredth of one percent. This percentage is referred to as "the actual cost
percentage" for the fiscal year. The actual cost percentage computed for the most recent fiscal
year is referred to as "the tentative cost percentage ".
D. Compensation. From the amounts otherwise available for distribution to the City
during a fiscal year, the Board is entitled to the actual cost percentage of such amounts as
compensation to the Board and reimbursement to it for the cost of rendering the service of ad-
ministering the City ordinance. There shall be withheld from amounts collected for the City the
tentative cost percentage of such amounts. When the actual cost percentage for a fiscal year
has been computed, the amounts which should have been withheld shall be determined. If these
amounts are less than those withheld using a tentative cost percentage, -the excess shall be
included in the next distribution of money to the City; if more, the deficiency shall be withheld
from the next distribution to the City.
E. Computation and notification. The costs and percentages required by this Article
shall be computed by the Board and approved by the Department of Finance. The Board will
notify the City of the results of its computations at least fifteen days before they are submitted
to the Department of Finance for approval.
S-527 REV. 2 (4-e9) - 3-
ARTICLE V
MISCELLANEOUS PROVISIONS
,A. Communications. Communications and notices may be sent by first -class United
States Mail. A notification is complete when deposited in the mail. Communications and notices
to be sent to the Board shall be addressed to:
State Board of Equalization
Sacramento 8, California
Attention: Secretary
Communications and notices to be sent to the City shall be addressed to:
k. 00 bid[
B. Term. The date of this Agreement is the date on which it is approved by the State
Department of Finance. The Agreement shall take effect on the first day of the calendar quarter
next succeeding the date of such approval, but in no case before the operative date of the City
ordinance, nor on a day other than the first day of a calendar quarter. This Agreement shall
continue until September 30 next following* the operative date of the City ordinance, and shall
thereafter be renewed automatically from year to year unless one of the parties gives written
notice of termination at least two months before the end of the term.
S -527 REV. 2 (459)
STATE BOARD OF EQ11ALIZATION
By Secretary
CITY OF
By
(Signature on this line)
(Type name here)
(Type title here)
-4-
IMPORTANT INSTRUCTIONS
1. insert name of the City at top of page 1; insert address for communications and notices to City in
Section A, Article V.
2. Sign five copies of the Agreement, sending all of them to the Secretary, State Board of Equalization,
Sacramento 8, California. (If the City desires to keep a file copy of the Agreement, an additional
copy should be prepared for that purpose.)
3. Attach to each copy of the Agreement sent to the Board, a certified copy of the City Sales and Use
Tax Ordinance. also attach to each copy a certified copy of the order, motion or resolution of the
City Council authorizing the execution of the Agreement.
Ex 1p anaiim
When an Agreement is transmitted in accordance with the foregoing instructions, it will be executed
on behalf of the Board and submitted to the State Department of Finance for approval. When approved,
one copy will be returned to the City with endorsement of approval. If a copy has been retained by the
City, it may then be conformed to the approved copy.
S -527 REV. 2 (4-59) - `�