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HomeMy WebLinkAbout790 - License Tax• • • ORDINANCE NO. 790 AN ORDINANCE OF THE CITY OF NEWPORT BEACH ADDING PART I, SECTIONS 6426 -6449 TO CHAPTER IV OF ARTICLE VI OF THE MUNICIPAL CODE, IMPOS- ING A LICENSE TAX FOR THE PRIVILEGE OF SELLING TAN- GIBLE PERSONAL PROPERTY AT RETAIL, PROVIDING FOR PERMITS TO RETAILERS, PRO- VIDING FOR THE COLLECTING AND PAYING OF SUCH TAX, AND PRESCRIBING PENALTIES FOR VIOLATIONS OF THE PRO- VISIONS HEREOF AND DELET- ING SECTIONS 6400 THROUGH 6425 OF CHAPTER IV OF ARTI- CLE VI OF THE MUNICIPAL CODE. The City Council of the City of Newport Beach does ordain as follows: SECTION 1: That Part I, Sec- tion 6426 through and including 6449 be added to Chapter IV of Article VI of the Municipal Code of the City of Newport Beach to read as follows: "PART I. SALES TAX "Section 6426. IMPOSITION AND RATE OF TAX. For the privilege of selling tangible per- sonal property at retail a tax is hereby imposed upon all retail- ers at the rate of one percent (1 1Y) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City of Newport Beach on or after April 1, 1956. The said tax imposed shall be in addition to any and all other taxes imposed by any other ordi- nance of the City of Newport Beach. "Section 6427. 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 I of Division 2 of the California Rev- enue and Taxation Code, known as the 'Sales and Use Tax Law.' as amended and in force and ef- fect on April 1, 1956. "Section 6428. ADOPTION OF STATE SALES TAX LAW $Y REFERENCE. EXCEPTIONS. "A. All of the provisions of the 'Sales and Use Tax Law; as amended and in force and effect on April 1, 1956, except the pro. visions thereof pertaining solely to the 'Use Tax' and Sections 60519 60529 60539 60669 60679 60689 60699 60709 60719 6451, 70529 70569 71019 71029 71519 71529 7153, ap- plicable to sales of property at retail, are hereby adopted and made a part of Part I of this chapter as though fully set forth herein, and all provisions of any other ordinance in conflict there- with are inapplicable to Part I of this chapter and the tax here- by imposed. B. 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 re- tailer or upon the consumer. "C. The term 'sale' shall mean and include, in addition to the meanings contained in para- graph A of this section, the with- drawal by a retailer in this City of tangible personal property from a place in this City, from a place in California outside of this City under the control of the retailer, or from a place in Cali- fornia outside this City at the order of the retailer, for delivery in any manner at a point in Cali- fornia outside this City under such circumstances that the transac- tion of which the withdrawal is a part would have been consider- ed a sale within the meaning of paragraph A of this section had the point of delivery been within this City. Provided, however, that withdrawals pursuant to a trans- action in foreign or interstate commerce shall not be sales for the purpose of this section. Charges made for the delivery of tangible personal property so withdrawn shall be included in the gross receipts by which the tax imposed under this section is measured unless such charges are separately stated and are im- posed for transportation which occurs after the sale of the pro- perty to the purchaser. "D. All of the provisions of the 'Sales and Use Tax Law' 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 Newport Beach. All other provisions of the 'Sales and Use Tax Law' here- by adopted, providing for the performance of official action on the part of the State Board of Equalization, shall be performed by the City Director of Finance of the City of Newport Beach. 'E. The City of Newport Beach shall be deemed substi- tuted for the State of California whenever the State is referred to in said 'Sales and Use Tax Law.' "F. The City Attorney of New- port Beach shall be deemed sub- stituted for the Attorney General whenever the Attorney General Is referred to in said 'Sales and Use Tax Law.' "G. The City Director of Fi- nance of the City of Newport Beach shall be deemed substi- tuted for the State Controller whenever the State Controller or State Board of Control are refer- red to in said 'Sales and Use Tax Law.' "H. The County of Orange shall be deemed substituted for the County of Sacramento when- ever the County of Sacramento is referred to In said 'Sales and Use Tax Law.' "Section 6429. EXEMPTIONS. In addition to the exemptions contained in Part I of Division 2 of the Revenue and Taxation Code of the State of California, after April 1. 1956. there shall be excluded from the computation of the tax gross receipts from: "A. The amount of any sales or use tax imposed by the State of California upon a retailer or consumer. "B. Receipts from the sale of tangible personal property upon which a sales or use tax has be- come due by reason of the same transaction to any other city and county, county other than Or- ange County, or city in this state under a sales or use tax ordi- nance enacted by that city and county, county other than Or- ange County, or city in this state, whether in accordance with, or purporting to be in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code of the State of California, or in ac- cordance with the organic law of any such city. "C. Receipts from sales to operators of common carrier and waterborne vessels of property to be used or consumed in the oper- ation of such common carriers or waterborne vessels principally outside of this City. "D. Sales made pursuant to contracts actually executed in good faith prior to April 1, 1956. "Section 6430. ADOPTION OF RULES AND REGULATIONS BY REFERENCE. INTERPRETA- TIONS. The rules and regula- tions of the State Board of Equal- ization as amended and in force and effect April 1, 1956, pertain- ing to the interpretation, admin- istration and enforcement of the 'Sales and Use Tax Law; insofar as applicable, except Rule No. 55 (Section 2015, Title 18, California Administrative Code, Sales & Use Tax) shall apply in the interpre- tation of Part I of this chapter until specifically abandoned by the rules and regulations adopted by the City Council of Newport Beach pursuant to Part I of this chapter. The word 'City' shall be deemed substituted for the word 'State' whenever the word 'State' appears in said rules and regu- lations. In lieu of Rule No. 55, specifi- cally excepted above, the follow - interpretations shall apply in the administration of Part I of this chapter: "A. The sales tax does not apply to sales of property which is: (1) Imported into this City from a foreign country and sold by the importer in the original package in which imported. (2) Sold to foreign purchasers for shipment abroad and de- livered to a ship, airplane, or other conveyance furnished by the purchaser for the purpose of carrying the property abroad and actually carried to a foreign des- tination, 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 Shippers' export declaration filed with the Collector of Customs must be obtained and retained by retailers to support deductions taken under this paragraph. The tax applied to the transaction if the property is diverted in transit or for any reason not actually delivered outside the City pursu- ant to the contract'of sale or not shipped abroad by a foreign,pur- • i chaser, regardless of documen- tary evidence held by the re- tailer of delivery of the property to a carrier for shipment outside the City, or to a foreign pur- chaser for shipment abroad. (3) Mailed by the seller, pur- suant to the contract of sale, to persons in the armed forces at points outside continental United States, notwithstanding the pro- perty is addressed in care of the Postmaster and forwarded by him to the addressee. When mail is addressed to Army Post Offices (A- P -O's) in care of the Post- master or to naval forces ad- dressed 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. (4) Shipped to a point out- side this City pursuant to the contract of sale when the pro- perty 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 puchaser at such a point. "B. The sales tax DOES NOT apply to sales of airplanes, and parts and equipment for air- planes, transported to a point outside this City pursuant to the contract of sale when such pro- perty is delivered to the United States Army Corps or any other agency or instrumentality of the United States for transportation and delivery to the purchaser or someone designated by him at that point. "C. The sales tax DOES NOT apply (either in interstate or in- trastate commerce) to sales of property shipped from a point ouside the City of Newport each to a purchaser inside the City of Newport Beach, or to the retail- er's agent in the City of Newport Beach, for delivery to the pur- chaser, if none of the elements of sale, other than such delivery, takes place in the City of New- port Beach. "D. The sales tax DOES ap- ply (either in interstate or intra- state commerce) to sales of pro- perty shipped from a point out- side of the (Sty of Newport Beach to a purchaser inside the City of Newport Beach, or to the retail- er's agent in the City of Newport Beach, for delivery to the pur- chaser where any element of the sale, in addition to such delivery, takes places in the City of New. port Beach. "E. 'Element of Sale' is here- by 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. "F. The City Director of Fi. nance may approve the payment of the sales tax by retailers lo- cated outside the city in accord- ance with a formula if he finds that the formula will produce the same or approximately the same tax as if detailed account- ing procedures had been fol- lowed. A retailer desiring to use such a formula shall furnish such information as may be required by the City Director of Finance to enable him to make the required finding. The formula may be used by the retailer for such period of time, not to exceed one year, as may be authorized by the City Director of Finance in writing, and is subject to re- newal, upon application, for periods not to exceed one year. "Payment in full of sales taxes in accordance with an approved formula shall constitute full sat- isfaction of the retailer's sales tax liability. "Section 6431. VERBATIM EX- CERPTS SHALL NOT EXCLUDE BALANCE. The inclusion of any clause, portion or part of the 'State Sales and Use Tax Law,' Part 1, Division 2, of the Revenue and Taxation Code of the State of Califorina, or the rules and regulations of the State Board of Equalization, verbatim in this ordinance shall not in or of it- self 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 hereof by reference only. "Section 6432. 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 Director of Finance 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 Di- rector of Finance 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 Director of Finance may require. The application shall be signed by the owner, if a natural person; in the case of a corpora- tion, by an executive officer or some person specifically author- ized by the corporation to sign the application, to which shall be attached the written evidence of his authority. "Section 6433. ISSUANCE AND DISPLAY OF PERMIT. After com- pliance with Section 6432 of Part I of this chapter by the appli- cant, the City Director of Finance shall grant and issue to each applicant a separate permit for each place of business from which taxable sales will be made. A permlt 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 Director of Finance. The permit shall at all times be conspicuously dis- played at the place for which issued. "Section 6434. PERMIT FEES. At the time of making an appli- cation for a permit, and at the time a change of location is en. dorsed upon a permit, the ap- plicant for a permit or for an endorsement of a change of lo- cation on a permit shall pay to the City Director of Finance a fee of One Dollar ($1.00). "Section 6435. REVOCATION OF PERMIT. Whenever any per- son fails to comply with any of the provisions of Part I of this chapter or any rule or regula- tion adopted pursuant hereto, the City Council of the City of New- port Beach, upon hearing, after giving the person ten days' no- tice in writing specifying the time and place of hearing and requiring him to show cause why his permit or permits should not be revoked, may revoke or sus- pend any one or more of the per- mits held by the person. The no- tice may be served personally or by mail In the manner prescribed for the service of notice of a de- ficiency determination under the 'Sales and Use Tax Law.' The City Director of Finance shall not issue a new permit after the revocation of a permit unless the City Council of the City of New- port Beach is satisfied that the former holder of a permit will comply with the provisions of Part I of this chapter and the rules and regulations adopted pursuant hereto and directs the City Director of Finance to issue such permit. "Section 6436. RENEWAL OF PERMIT. A seller whose permit has been previously suspended or revoked shall pay the City Di- rector of Finance a fee of $15.00 for the renewal or issuance of a permit. "Section 6437. UNLAWFUL ACTS. A person who engages in business as a seller in the City of Newport Beach without a per- mit or permits, or after a permit has been suspended or revoked and before the renewal or issu- ance of a permit, and each offi- cer of any corporation which so engages in business, is guilty of a misdemeanor. "Section 6438. DUE DATE. The taxes imposed by Part I of this chapter are due and payable to the City Director of Finance on or before the last day of the month next succeeding each quarterly period, the first quar- terly payment to be due and payable under Part I of this chapter on the 31st day of July, 1956. The City Director of Fi- nance may require returns and payment of the amount of taxes for quarterly periods other than calendar 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 6439. REIMBURSE- MENT. The tax hereby imposed shall be collected by the retailer from the consumer insofar as it can be done. "Section 6440. UNLAWFUL AD- VERTISING. It is unlawful for, any retailer to advertise or hold out or state to the public or to any customer, directly or indi- i E i rectiy, that the tax 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. Any person violating any provision of this section is guilty of a misde- meanor. "Section 6441. SUIT FOR TAX. All taxes hereby levied shall be payable to the City Director of Finance 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 said City shall prosecute the action. "Section 6442. RESALE CER- TIFICATE. The City Director of Finance may at his option accept a State of California Resale Cer- tificate 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 determine the nature of such sale. "Section 6443. EXTENSION OF TIME. WAIVER OR COMPRO- MISE. The City Director of Fi- nance 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 paying any amount required to be paid under Part I of this chapter, when requested so to do in writing, before the same becomes delinquent. The City Di- rector of Finance may, with the written approval of the City At- torney, waive or compromise any penalty or interest that would otherwise accrue under the pro- visions of Part I of this chapter. The City Director of Finance shall make and transmit to the city Council quarterly a detailed report of any sums so waived or compromised with the reasons therefor. "Section 6444. DISPOSITION OF PROCEEDS. All monies col- lected under and pursuant to the provisions of Part I of this chap- ter shall be deposited and paid into the General Fund of the City of Newport Beach. "Section 6445. DIVULGING OF INFORMATION FORBIDDEN. It is unlawful for any officer or employee of the City of Newport Beach having an administrative duty under Part I of this chapter to make known in any manner whatever the business affairs, operations, or information ob- tained by an investigation of records and equipment of any re- tailer or any other person visited or examined In the discharge of official duty, or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth or disclosed in any return, or to permit any re- turn or copy thereof or any book containing any abstact or par- ticulars thereof to be seen or examined by any person. How- ever, the City Council may, by resolution, authorize examina- tion of the returns by federal or state officers or employees or by the tax officers of this or any other city if a reciprocal arrange- ment exists. Successors, receivers, trustees, executors, administra- tors, assignees, and guarantors, If directly interested, may be given information as to the items Included in the measure and amounts of any unpaid tax or amounts of tax required to be collected, interest and penalties. "Section 6446. PENALTIES. Any person required to make, render, sign or verify any report under the provisions of Part I of this chapter, who makes any false or fraudulent return, with intent to defeat or evade the de- termination of an amount due and required to be paid here. under, is guilty of a misdemea- nor, and upon conviction thereof shall be punishable by a fine of not more than Five Hundred Dol. lars ($500.00) or by imprison. ment for a period of not more than six months, or by both such fine and imprisonment. "Section 6447. SAME. Any per- son, firm or corporation violating any of the terms of Part I of this chapter shall be deemed guilty of a misdemeanor, and upon con. viction thereof shall be punish- able by a fine of not more than Five Hundred Dollars ($500.00) or by imprisonment for a period of not more than six months, or by both such fine and imprison- ment. "Section 6445. SEVERABILITY. If any section, subsection, sen- tence, clause, phrase, or portion of Part I of this chapter 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 remain- ing portions of Part I of this chapter. The council of this City hereby declares that it would have adopted Part I of this chap- ter and each section, subsection, sentence, clause, phrase or por- tion thereof, irrespective of the fact that any one or more sec. tions, subsections, clauses, phra. ses or portions be declared in- valid or unconstitutional. "Section 6449. OPERATIVE DATE. Part I, Sections 6426 to and including Section 6449 of Chapter IV of Article VI of the Municipal Code, shall be opera- tive as of April 1, 1956. "The purpose of this ordinance is to amend Chapter IV of Article VI of the Municipal Code of the City of Newport Beach by substi- tuting Part I, Sections 6426 to and including Section 6449 and Part II, Section 6460 to and in- cluding Section 6484 of Chapter IV of Article VI of said Munici- pal Code, in place of Sections 6400 to and including Section 6425 of Chapter IV of Article VI of said Municipal Code which were and are suspended by City Ordinance No. 772 as of April 1, 1956. "If for any reason it is deter- mined that said Sections 6426 to and including Section 6449 of Part I of Chapter IV of Article VI of the Municipal Code of the City of Newport Beach, are not oper. ative as of April 1, 1956, then in that event said sections shall be operative as of July 9, 1956." SECTION 2: That Sections 6400 to and including Section 6425 of Chapter IV of Article VI of the Municipal Code of the City of Newport Beach, be and the same are hereby deleted and repealed. SECTION 3: This ordinance, in- asmuch as it provides for a tax levy for'the usual current ex. penses of the City of Newport Beach, shall take effect immedi- ately upon the passage thereof and shall be published once in the NEWPORT HARBOR ENSIGN, a newspaper of general circula- tion printed and published and circulated in the City of Newport Beach. The above and foregoing ordi- nance was introduced and adopted at a regular meeting of the City Council of the City of Newport Beach, held on the 9th day of July, 1956, by the follow- ing vote, to -wit: AYES, COUNCILMEN: Hart, Wilder, MacKay, Hlgbie, Bidder - hof, Hill. NOES, COUNCILMEN: None. ABSENT COUNCILMEN: Stod- dard. ATTEST: MARGERY SCHROUDER City Clerk ,'DORA HILL Mayor 0 0 0 STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF NEWPORT BEACH Margery Schrouder I SS. City Clerk of the City of Newport Beach, California, do hereby certify that the foregoing Ordinance Y Y 9 9 --...- ----------------- - No.- .- _-- 79°- __ - - -was duly and regularly adopted, passed, and approved by the City Council of the City of Newport Beach, California, at a regular meeting of said City Council held at the regular meeting place thereof, on the .... -- _9th - - - - -- -day, of.------ J�y----------------_------------ .- .._------- Iq- -�r.6. by the following vote: AYES: COUNCILMEN ..... Harty Wilder, MacKay, Higbie, Ridderhof, Hill NOES: COUNCILMEN -- -None ABSENT: COUNCILMEN---- Stoddard ----------------- - - - - -- Dated this ..... 3rd .......... day of----- - -. - -- NB 130 - 500 -6/51 August 19. -56 City Clerk and - f-iclo Clerk of the City Council, City of Newport Beach, State of California