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HomeMy WebLinkAbout581 - Tangible Personal Property• • ORDINANCE No. 581 AN ORDINANCE OF THE CITY OF NEWPORT BEACH IMPOSING A LICENSE TAX FOR THE PRIVH.EGE OF SELLING TANGIBLE PERSONAL PROPERTY AT RETAIL AND EVIPOSING AN EXCISE TAX ON THE USE OR OTHER CONSUMPTION OF TANGIBLE PERSONAL PROPERTY AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF. The City of Newport Beach, by and through its City Council, does ordain as follows: SECTION I. DEFINITIONS. Wherever used in this ordinance the following words shall have the meanings indicated: "City Council" shall mean the City Council of the City of New- port Beach. "Tax Collector" shall mean the City Clerk of the City of New- port Beach. SECTION 2. IMPOSITION AND RATE OF SALES TAX. For the privilege of selling tang- ible personal property at retail a tax is hereby imposed upon all retailers at the rate of one percent (1 %) of the gross re- ceipts of any retailer from the sale of all tangible personal property sold at retail in the City of Newport Beach on and after October 1, 1948; said tax shall be in addition to any and all taxes imposed by any other ordinance of the City of Newport Beach. SECTION S. IMPOSITION AND RATE OF USE TAX. An excise tax is hereby imposed on the storage, use, or other con- sumption in the City of Newport Beach of tangible personal prop- erty purchased from any retailer on and after October 1, 1948, for storage, use, or other con- sumption in said city at the rate of one percent (1 %) of the sales price of the property. Said tax shall be In addition to any and all taxes imposed by any other ordinance of the City of Newport Beach. SECTION 4. TAXES LEVIED IN SAME MANNER AS STATE TAX. The taxes hereby imposed, except as otherwise herein pro- vided, shall be imposed in the same manner, to the same extent and under the same conditions as taxes we imposed pursuant to Part 1 of Division 2 of the Revenue and Taxation Code of the State of California known as the "Sales and Use Tax Law" as amended and in force and effect on July 1, 1948, or any amendments hereinafter adopted and in force and effect in the State of California. SECTION 5. ADOPTION OF STATE SALES TAX LAW BY REFERENCE. — EXCEPTIONS. All of the provisions of said "Sales and Use Tax Law" as amended and in force and effect on July 1, 1948, except Sections 6051, 6053, 6066 to 6071 inclusive, 6201 to 6205 inclusive, 6207, 6226, 6246, 6403, 6451, 6826, 6901 to 6937 inclusive, 6291, 7052, 7056, 7101 to 7153 inclusive, and 7176, are hereby adopted and made a Part of this ordinance as though fully set forth herein and all provisions of any ether ordinance in conflict therewith are inappli- cable to this ordinance and the taxes hereby imposed; provided, however, that the term "gross receipts" and the term "sales Price" as used herein shall not include the amount of any tax imposed by the State of Call - fornia under and pursuant to said "Sales and Use Tax Law." The inclusion of or further reference to any section, clause, or part of said "Sales and Use Tax Law" in this ordinance shall not be deemed to exclude any of the remaining provisions of said "Sales and Use Tax Law" that are made a part hereof by reference only. All of the provisions of said "Sales and Use Tax Law" hereby adopted providing for the adop- tion of rules and regulations and for hearings on the part of the State Board of Equalization shall be performed by the City Council. All other provisions of said "Sales and Use Tax Law" hereby adopted providing for the per- formance of official action on the part of the State Board of Equal- ization shall be performed by the City Clerk. The City of Newport Beach shall be deemed substituted for the State of California wherever the State is referred to in said "Sales and Use Tax Law" and in the rules and regulations of the State Board of Equalization hereinafter adopted. The City Attorney of Newport Beach shall be deemed substi- tuted for the Attorney General wherever the Attorney General is referred to in said "Sales and Use Tax 'Law" and in the rules and regulations of the S t a t e Board of Equalization hereinafter adopted. The City Auditor shall be deemed substituted for the State Controller and State Board of Control wherever the State Con- troller or State Board of Control are referred to in said "Sales and Use Tax Law" and in the rules and regulations of the State Board of Equalization hereinafter adopted. The County of Orange shall be deemed substituted for t h e County of Sacramento wherever the County of Sacramento is re- ferred to in said "Sales and Use Tax Law" and in the rules and regulations of the State Board of Equalization hereinafter adopted. SECTION 6. EXEMPTIONS. In a d d i t 10 n to the exemptions allowed under said "Sales and Use Tax Law" there shall be exempted from the taxes imposed hereunder: (a) Sales of meals, food and drinks on common c a r r i e r s operating trhough the City of Newport Beach. (b) Sales made to or purchases by any agency, department, poli- tical subdivision, district or muni- cipal corporation, other than the State of California. (c) Sales or purchases of prop- erty to be used in the erection, construction, repair or alteration of either public works or build- ings belonging to or being con- structed by or on behalf of, or for the use of the United States Government, or public or munl- cipal corporation of the State. (d) Sales or purchases made pursuant to contracts actually executed in good faith prior to October 1, 1948. (e) Sales or purchases of prop- erty upon which a sales or use tax has been imposed by any other city of the State of Cali- fornia on the same transaction. (f) Purchases of property upon which a sales tax has been im- posed hereunder on the same transaction. (g) "Storage" and "Use" do not include the keeping, retaining or exercising any right or power over tangible personal property shipped or brought into this city for the purpose of being sub sequently sold or resold in the regular course of business, or if such property was purchased for principal use or consumption out- side the City, and is so used or consumed. (h) "Storage" and "Use" do not include the keeping, retaining or exercising any right or power over tangible personal property shipped or brought into this City which is actually employed in the transportation or transmission of persons, property, gas, electricity or communications by persons engaged in the business of trans- porting or transmitting persons, property, gas, electricity or com- munications in both intrastate or foreign commerce. (i) Sales of property to oper- ators of common carriers to be used or consumed in the operation of such common carriers, prin- cipally outside the City. (j) Sales of property to pur- e h a s e r s engaged in business wholly or partly outside the city where t h e property is to be transported outside t h e C i t y without undue delay to be used only outside the City in such business. SECTION 7. ADOPTION OF RULES AND REGULATIONS BY REFERENCE. The rules and regulations of the State Board of Equalization as amended and in force and effect July 1, 1948, pertaining to the interpretation, administra- tion and enforcement of said "Sales and Use Tax Law" insofar as applicable, shall apply in the interpretation of this ordinance unless in conflict with the rules or regulations adopted by the Commission in which event the rules and regulations adopted by the Commission shall control. The City of Newport Beach shall be deemed substituted for the State of California wherever the State is referred to in said rules and regulations of the State Board of Equalization. SECTION 8. ADOPTION OF RULES AND REGULATIONS. The City Council of the City of Newport Beach by resolution may prescribe and adopt rules and regulations relating to the administration and enforcement of htis ordinance. SECTION 9. APPLICATION FOR PERMIT. Every person de- siring to engage in or conduct business as a seller within the City of Newport Beach shall file with the City Clerk an applica- tion for a permit for each place of business. Every Application for a permit shall be made upon a form prescribed by the City Clerk 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 Clerk may require. The applica- tion shall be signed by the owner, if a natural person: in the case of an association or partnership, by all members or partners; in the case of a corporation, by an executive officer or some person specifically authorized by thecorporation to sign ,the .appli- cation, to which shall be attached the written evidence of hjK -... authority. r SECTION 10c ISSUANCE AND DISPLAY OF . PERMIT. After compliance with: Section 9 of this ordinance by the applicant, the -` City Clerk shall,grant and to e a c h applicant. a separate- permit for each plce, of ,bush_iess. 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 J place designated therein; p r o- vided, however, a c h a n g e of location may be endorsed upon the permit by the City Clerk. The permit shall at all times be conspicuously displayed at the place for which issued. No fee shall be charged for the issuance of, or t h e endorsement of a change of location on, a permit. SECTION 11. REVOCATION OF PERMIT. Whenever any person fails to comply with any of the provisions of this ordi- nance or any rule or regulation adopted pursuant hereto, the City Council of the City of Newport Beach, upon hearing, after giving the person ten days' notice in writing specifying the time and place of hearing and requiring him to show cause why the per. mit or permits should not be revoked, may revoke or suspend any one or more of the permits held by such person. The notice may be served personally or by mail in the manner prescribed for the service of notice of a deficiency determination under said "Sales and Use Tax Law." The City Clerk shall not issue a new permit after the revoca- tion of a permit unless the City Council of the City of Newport Beach is satisfied that such . former holder of a permit will comply with the provisions of this ordinance and the rules and regulations a d o p t e d pursuant hereto and directs the City Clerk to issue such permit. SECTION 12. RENEWAL OF PERMIT. A seller whose permit has been previously suspended or revoked shall pay the City Clerk a fee of $15.00 for the renewal or issuance of a permit. S E C T 10 N 13. UNLAWFUL ACTS. It shall be unlawful for any person to engage in business as a seller in the City of Newport Beach without a permit or per. mits or after a permit has been suspended or revoked and before the renewal or issuance of a permit. SECTION 14. LIABILITY FOR USE TAX. Except as otherwise provided in this ordinance, every person storing, using or other. wise consuming In the City of Newport Beach tangible personal property purchased from a re- tailer is liable for the use tax imposed by Section 3 hereof. Such liability is not extinguished until the tax has been paid to the City of Newport Beach ex- cept that a receipt from a retail. er authorized by the City Clerk, under such rules and regulations as he may prescribe, to collect such tax shall be sufficient to relieve the purchaser from fur- ther liability for the tax to which the receipt refers. SECTION 15. COLLECTION OF USE TAX BY RETAILER. Any retailer may be authorized by the City Clerk to collect the use tax imposed by Section 3 hereof under such rules and reg. ulations as may be prescribed by the City Clerk. Upon such col- lections such retailer shall give to the purchaser a receipt there- for in the manner and form pre- scribed by the City Clerk. Every retailer maintaining a place of business in the City of Newport Beach and making sales of tangible personal property for storage, use or other comump. tion in said City, subject to the use tax imposed by Section 3 hereof, shall, at the time of mak- ing such sales, or, if the storage, use or other consumption of the tangible personal property is not I, C. K. Priest, Clerk of thi that the foregoing Ordinance Ordinance passed by the City 23rd day of August, 1946, an( cording to law. then taxable hereunder, at the time the storage, use or other consumption becomes taxable, c,. lect the tax from the purchaser and give to the purchaser a re- ceipt therefor in the manner and form prescribed by the City Clerk. Any tax collected pursuant to this ordinance by a retailer con- stitutes a debt owed by said re- tailer to the City of Newport Beach. SECTION 19. DUE DATE. The taxes imposed by this ordi- nance are due and payable to the City Clerk on or before the last day of the month next succeed- ing each quarterly period, the first quarterly payment to be due and payable under this ordinance on the last day of January, 1949. SECTION 17. UNLAWFUL ADVERTISING. It shall be un- lawful for any retailer to adver- tise or hold out or state to the public or to any customer, direct- ly or indirectly, that the tax as hereby imposed or any part thereof will be assumed or ab- sorbed 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. SECTION 18. SUIT FOR TAX. All taxes hereby imposed shall be payable to the City of Newport Beach and collectable by the City Clerk and any civil suit for the collection thereof may be filed in any court of competent jurisdiction in the State of Cali- fornia, and the City Attorney of the City of Newport Beach shall prosecute such action. SECTION 19. RESALE CER- TIFICATE. The City Clerk may at his option accept a State of California Resale Certificate as evidence that any sale is not a sale at retail, or he may in his discretion require an affidavit from the seller setting forth such Information respecting such sale as he deems necessary to deter. mine the nature of such sale. SECTION 20. DISPOSITION OF PROCEEDS. All moneys collected under and pursuant to the provisions of this ordinance shall be deposited and paid into the General Fund of the City of Newport Beach. SECTION 21. DIVULGING OF INFORMATION F O R B I D. returns by Federal or State offi- cers or employees or by the tax officers of this or any other city if a reciprocal arrangement exists. Successors, receivers, trustees, executors, administrat- ors, assignees, and guarantors, if directly interested, may be given information as to the items in- cluded in the measure and amounts of any unpaid tax or amounts of tax required to be collected, in- terest and penalties. SECTION 22. FRAUDULENT RETURNS. It shall be unlawful for any person to make any false or fraudulent return with intent to defeat or evade the determination of an amount due and required to be paid hereunder. SECTION 23. FAILURE TO MAKE RETURN OR FURNISH DATA. It shall be unlawful for any person to fail or refuse to furnish any return information or data reasonably required by the City Clerk in the administration of this ordinance. SECTION 24. REFUNDS. Claims and demands for refunds for any amounts erroneously or illegally collected under this ordi- nance shall be fil^d as required by the State law or City ordi. nances of the City of Newport Beach. SECTION 25. PENALTIES. Any person violating any of the provisions of this ordinance shall be deemed guilty of a misde- m e a n o r, and upon conviction thereof shall be punishable by a fine of not more than $300.00 or by imprisonment for a period of three (3) months in the City or County Jail, or by both such fine and imprisonment. SECTION 26. SEVERABILITY. If any section, subsection, sent- ence, clause, phrase, or portion of this ordinance is for any reason held to be invalid or unconstitu- tional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of t h i s ordinance. The C i t y Council of the City of Newport Beach hereby declares that it would have adopted this ordi- nance and each section, subsec- tion, 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. fc:a� DEN. It shall be unlawful for any officer or employee of the SECTION 27. The above and City of Newport Beach having foregoing Ordinance No. 581 an administrative duty under this shall be published once in the ordinance make known any NEWPORT- BALBOA PRESS, a manner whatever the busines s e s newspaper of general circulation fairs, operations, cr Information ion printed, published and circulated obtained an investigation In the City of Newport Beach, records and d equipment of any re- - and shall take effect and be in taller or any other person visited force October 1, 1948, being more or examined in the discharge of than thirty days after Its publi- official duty, or the amount mount or cation. source of income, profits, losses, I hereby certify Y y that the fore - expenditures, or any particular going Ordinance was Introduced thereof, set forth or disclosed In at a regular meeting of the City any return, or to permit any re- Council of the City of Newport turn or copy thereof or any book Beach held on the 9th day of containing any abstract or part. August, and and iculars thereof to be seen or ex- ss and48, p adopted d on the amined by any person, except day of August, 1948, by the a Court of competent jurisdiction City Council at a regular meeting may require in any criminal or thereof, by the following r o 1 l civil action, involving the pay. call vote, to -wit: y ment of said tax, to have pro - AYES, COUNCU -,MEN: Greely / duced in court all records of the Robertson,; Isbell, Blue and', tax payer and except said records _ Drake. may be examined and audited by _ NOES, COUNCILMEN: None any administrative officer or ABSENT, COUNCILMEN: None F auditor in the employ of said __- ATTEST: C. K.1PRIEST .. City at any time. Provided fur- CITY CLERK - ther, the City Council of the of Newport Beach may, by mot- No. 1O0— Newport- Balboa Press. , Ion, authorize examination of the August 26, September, 12, J' - City of Newport Beach, do hereby certify No. 561 is a true and correct copy of an Council at a regular meeting held on the L that same was printed and published ac- eat, Clerk of the City of ewpor